By Julie Ingwersen
CHICAGO, July 30 (Reuters) – U.S. corn and soybean futures fell about 2% on Friday on technical promoting and lengthy liquidation on the finish of the week and month, and on useful rains in parts of the Corn Belt, merchants stated.
Wheat futures ended modestly decrease however posted a achieve for the month of July.
Chicago Board of Commerce December corn CZ1 settled down 11-1/four cents at $5.45-1/four per bushel and November soybeans SX1 ended down 28-1/2 cents at $13.49-1/four a bushel. CBOT September wheat WU1 fell 1-1/2 cents to complete at $7.03-3/four a bushel.
Rains fell Friday in parts of South Dakota, Minnesota and northern Iowa, and a few forecasts indicated extra showers forward that might assist U.S. crop prospects.
“General, it is climate, and end-of-week and end-of-month profit-taking,” Terry Reilly, senior analyst with Futures Worldwide, stated of the declines in grain futures.
“In weather-sensitive markets, many merchants do not wish to go house with a place on, understanding that the climate fashions can change on a dime,” Reilly stated.
Commodity funds maintain web lengthy positions in CBOT corn and soybean futures, leaving the markets susceptible to lengthy liquidation.
Analysts additionally famous a bounce within the greenback .DXY, which tends to make U.S. grains much less aggressive globally. The greenback rose as upbeat financial information helped reverse among the losses from earlier this week.
Merchants await course from the U.S. Division of Agriculture’s weekly crop situation rankings on Monday, and from personal estimates of U.S. corn and soy yields forward of the USDA’s huge Aug. 12 crop provide/demand report.
CBOT wheat closed decrease on Friday in sympathy with corn and soybeans, however nonetheless completed the month up 3.6%. Minneapolis Grain Trade September spring wheat MWEU1 futures climbed 55 cents a bushel or 6.5% in July, following a 16% climb in June, as drought took maintain within the northern Plains, threatening spring wheat crops.
An annual U.S. crop tour on Thursday projected the common spring wheat yield in North Dakota, the top-producing state, at 29.1 bushels per acre, the bottom in tour data going again to 1993.
The Worldwide Grains Council this week reduce its 2021/22 world wheat crop outlook by a million tonnes to 788 million, with the diminished outlook for North America partially offset by improved prospects within the European Union.
(Extra reporting by Naveen Thukral in Singapore and Sybille de La Hamaide in Paris; enhancing by Sherry Jacob-Phillips, Aditya Soni and David Gregorio)
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