By Julie Ingwersen
CHICAGO, Might 14 (Reuters) – U.S. corn futures fell for a 3rd straight session on Friday, with the benchmark July contract CN1 hitting a two-week low on fund-driven lengthy liquidation amid easing issues about dwindling provides, analysts mentioned.
Soybean and wheat futures closed larger.
Chicago Board of Commerce July corn futures CN1 settled down 31 cents at $6.43-3/Four per bushel. July soybeans SN1 ended up 2-1/Four cents at $15.86-1/Four a bushel and July wheat WN1 rose 5-3/Four cents to shut at $7.07-1/4.
Corn fell greater than 4% and recorded a weekly decline of 12.1% – its first retreat in seven weeks – as merchants centered on a bigger-than-expected provide outlook launched Wednesday by the U.S. Division of Agriculture.
The USDA report fuelled promoting after corn’s eight-year peak final week. Commodity funds maintain a large internet lengthy place in CBOT corn futures, leaving the market susceptible to bouts of lengthy liquidation. [nAQN0469GE]
“I simply suppose the specs have extra promoting to do. It could take climate (issues) to get this market going once more,” mentioned Jack Scoville, analyst with the Value Futures Group in Chicago.
The market shrugged off the USDA’s affirmation of personal gross sales of 1.36 million tonnes of new-crop U.S. corn to China, the most recent in a collection of corn gross sales bulletins in current days.
Scoville mentioned the bookings, for supply within the 2021/22 advertising and marketing yr that begins Sept. 1, 2021, recommend China could also be performed shopping for old-crop U.S. corn, which is scarce as provides dwindle forward of the autumn harvest.
In the meantime, non-public analytics agency IHS Markit Agribusiness projected U.S. 2021 corn plantings at 96.eight million acres, up considerably from the USDA’s present forecast of 91.1 million acres.
Corn and soy futures drew gentle help from information that the Mississippi River reopened to vessel visitors close to Memphis, Tennessee, ending a shutdown of a part of the waterway that brought on a backlog of greater than 1,000 barges loaded with grain, oil and different items.
For wheat, merchants have been weighing harvest prospects within the northern hemisphere, with forecasts calling for restricted rain in components of Russia and elevating some issues regardless of forecasts this week pointing to a bumper harvest. WASDE13
Rains anticipated within the southern U.S. Plains might enhance winter wheat there, though dryness in northern spring wheat zones remained a danger, analysts mentioned.
(Extra reporting by Gus Trompiz in Paris and Colin Packham in Canberra; Enhancing by Marguerita Choy and Elaine Hardcastle)
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