By Mark Weinraub
CHICAGO, June 25 (Reuters) – Corn and soybean futures fell to one-week lows on Friday after a U.S. Supreme Court docket ruling bolstered a bid by small oil refineries searching for exemptions from legal guidelines requiring them to mix ethanol or different biofuels into their merchandise, merchants stated.
“That could be a bearish form of a scenario,” stated Greg Develop, director of agribusiness at Archer Monetary Companies. “That actually is just not excellent news on the demand aspect.”
The intently watched Supreme Court docket 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 delicate crimson winter wheat contract Wv1 hitting its lowest since mid-April, as the continued harvest within the northern hemisphere boosted provides.
The corn and soybean markets additionally confronted stress from some much-needed rains throughout massive swaths of key U.S. rising areas.
“The center of the Corn Belt is getting a superb shot of rain at a really well timed second,” Develop stated.
At 10:55 a.m. CDT (1555 GMT), CBOT December corn futures CZ1 have been down 15-1/2 cents at $5.20-1/2 a bushel and CBOT November soybeans SX1 have been 23-1/2 cents decrease at $12.68-1/4.
“The long-awaited rains within the Iowa area are notably welcome,” consultancy Agritel stated in a notice, referring to the biggest U.S. corn-producing state.
Market contributors are more and more turning their consideration towards the U.S. Division of Agriculture’s June 30 acreage report. Analysts anticipated the USDA to extend corn and soy space estimates in contrast with its March projections.
CBOT September delicate crimson winter wheat futures WU1 have been down 12 cents at $6.40 a bushel.
However MGEX spring wheat futures for September supply MWEU1 have been up 6-3/Four cents at $8.12 a bushel because the crop within the northern U.S. Plains and Black Sea has been confused by drought.
(Extra reporting by Gus Trompiz in Paris and Colin Packham in Canberra; Enhancing by Amy Caren Daniel, David Evans and Dan Grebler)
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