(Photo: Reuters/Jorge Adorno
A military of Chicago faced extremely volatile negotiations this Thursday (26), reaching a new peak in two months before closing lower, amid questions about export demand and the impacts of the drought at the end of the season on the income of US crops, traders said.
The futures of wheat fell, with weak weekly export sales weighing on prices and traders adjusting their positions ahead of two important government reports, according to market analysts.
The futures of corn fell due to weak weekly export numbers despite news of a second US corn flash sale to Mexico, analysts said.
The most active soybean contract on the Chicago Stock Exchange (CBOT) fell 12.25 cents, to $10.41 per bushel. It previously reached $10.6475 per bushel, surpassing the two-month high reached earlier this week.
CBOT wheat ended down 5 cents at $5.8425 a bushel, while corn fell 2 cents to $4.1325 a bushel.
Traders said they are awaiting the annual small grains summary and quarterly grain stocks reports from the U.S. Department of Agriculture on Monday.
Although news about Chinese economic stimulus measures supported soybean prices earlier in the session, traders were unable to shake off the bearish sentiment that has been hanging over the soybean market in recent months, according to traders.
“It’s unclear what all this means for the grain market in the near term,” said Angie Setzer of Consus Ag Consulting.
Drought has delayed the start of Brazil's soybean planting campaign, although operators say next month's rains could allow field work to begin on time.
Meanwhile, winter wheat seeding rates in Russia have fallen to their lowest level in 11 years due to drought in the main producing regions, consultancy Sovecon said on Wednesday.