By Mark Weinraub
CHICAGO, June 25 (Reuters) – Corn and soybean futures tumbled on Friday after a U.S. Supreme Courtroom ruling bolstered a bid by small oil refineries looking for exemptions from legal guidelines requiring them to mix ethanol or different biofuels into their merchandise, merchants mentioned.
“Every time the markets begin to stabilize, having priced within the newest spherical of bearish information, one other shot of reports knocks the markets off their ft once more,” mentioned Arlan Suderman, chief commodities economist at StoneX. “Right this moment’s information was a Supreme Courtroom determination.”
The carefully watched case, reflecting a long-running dispute between the oil and corn industries, was seen as a serious setback for biofuel producers.
Winter wheat futures additionally fell, with the most-active Chicago Board of Commerce mushy pink winter wheat contract Wv1 hitting its lowest since mid-April, as the continuing harvest within the northern hemisphere boosted provides.
Corn and soybeans additionally confronted strain from rains throughout giant swaths of key U.S. rising areas.
“The guts of the Corn Belt is getting a very good shot of rain at a really well timed second,” mentioned Greg Develop, director of agribusiness at Archer Monetary Companies.
CBOT December corn futures CZ1 settled down 16-3/Four cents at $5.19-1/Four a bushel and CBOT November soybeans SX1 have been 22 cents decrease at $12.69-3/4.
“The long-awaited rains within the Iowa area are significantly welcome,” consultancy Agritel mentioned in a observe, referring to the biggest U.S. corn-producing state.
Market individuals are turning their consideration towards the U.S. Division of Agriculture’s June 30 acreage report. Analysts anticipated a rise in corn and soy space estimates in contrast with USDA’s March projections.
CBOT September mushy pink winter wheat futures WU1 have been down 11-1/Four cents at $6.40-3/Four a bushel.
However MGEX spring wheat futures for September supply MWEU1 have been up 2-3/Four cents at $8.08 a bushel because the crop within the northern U.S. Plains and Black Sea has been harassed by drought.
(Further reporting by Gus Trompiz in Paris and Colin Packham in Canberra; Enhancing by Amy Caren Daniel, David Evans, Dan Grebler and Jonathan Oatis)
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