By Julie Ingwersen
CHICAGO, Aug 20 (Reuters) – U.S. soybean futures fell to their lowest in practically two months on Friday and corn set a close to one-month low on macroeconomic issues together with helpful rains within the western Midwest and Plains, analysts stated.
Soyoil futures fell greater than 5% on studies that the U.S. Environmental Safety Company (EPA) will suggest decreasing the nation’s biofuel mixing mandates for 2021.
Wheat futures adopted the weaker pattern.
Chicago Board of Commerce November soybeans SX1 settled down 29-1/Four cents at $12.90-3/Four per bushel after dipping to $12.77-1/4, the contract’s lowest since June 28.
Benchmark December soyoil BOZ1 settled down 3.27 cents at 56.65 cents per pound, paring losses after falling its every day 3.5-cent most. CBOT December corn CZ1 ended down 13-3/Four cents at $5.37 a bushel after hitting $5.32-1/2, its lowest since July 26.
Soyoil is the primary U.S. feed inventory for biodiesel gasoline and corn is used for ethanol. The EPA is anticipated to suggest to the White Home decreasing federal biofuel mixing mandates for 2021 to under 2020 ranges, two sources aware of the matter stated on Friday, in what can be a blow to the biofuels trade.
The EPA additionally is anticipated to make a separate advice to spice up the mixing mandates for 2022 above the earlier two years, in response to the sources.
Grains confronted extra strain from issues about world financial progress amid rising coronavirus circumstances, which have weighed down crude oil and boosted safe-haven belongings like gold. MKTS/GLOB
“We’re seeing a risk-off session,” stated Terry Reilly, senior analyst with Futures Worldwide in Chicago. “There are world financial issues … That’s shaking up the commodity markets typically,” Reilly stated.
Commodity funds maintain a web lengthy place in CBOT corn and soybean futures, leaving these markets vulnerable to bouts of lengthy liquidation.
Additionally, forecasts referred to as for helpful rains by way of this weekend within the Dakotas and surrounding U.S. crop areas which have struggled with months of drought.
“The heaviest rainfall is anticipated in North Dakota, which ought to lastly start to ease dryness, though the rain is probably going coming too late to dramatically enhance crop yields,” area expertise firm Maxar stated in a word.
In the meantime, the Professional Farmer Midwest Crop Tour concluded late Thursday, projected above-average corn yield prospects in Iowa and below-average prospects in Minnesota.
After the CBOT shut, Professional Farmer projected that U.S. farmers would harvest a corn crop of 15.116 billion bushels and a soybean crop of 4.436 billion bushels, each bigger than the USDA’s newest estimates.
(Reporting by Julie Ingwersen in Chicago, Gus Trompiz in Paris and Naveen Thukral in Singapore; modifying by Uttaresh.V, Susan Fenton and Grant McCool)
(([email protected]; 1-313-484-5283; Reuters Messaging: [email protected]))
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.