Chicago Agriculture Commodities Finished Lower
$WEAT, $CORN, $SOYB
Chicago Board of Trade (CBOT) agriculture grains futures finished lower Tuesday with Soybean futures falling to a 6-day low, pressured by the rapidly advancing harvest of a record crop in Brazil and much-needed rains in Argentina.
Corn and Wheat futures also weakened, setting back from 7.5-month highs in the absence of Bullish news. Declines in Corn and Wheat were limited by speculators defending long positions they have built up during the recent rally.
Soybean were on the defensive on expectations of a bumper harvest in both Brazil and Argentina that will boost competition for US supplies on the export market.
The most active Corn contract for March delivery fell 1.25 cents, or 0.33%, to 3.7425 bu.
March Wheat delivery fell 2.75 cents, or 0.61 percent, to 4.495 bu.
March Soybean dropped 9.25 cents, or 0.88%, to 10.45 bu.
Rain in Argentina would maintain the potential for high Corn and Soybean yields in that country.
Brazil’s MY 2016-17 Corn crop should reach a record 89.6-M tonnes as analysts raised expected yields due to favorable weather.
Dealers said that selling by US Soybean farmers has also helped to stall a run-up in prices this month.
US farmers have made advance sales of up to 59% the Soybean they expect to harvest this year, looking to get ahead of the expected record South American crop.
Signs of good export demand kept the declines in check.
The US Department of Agriculture (USDA) said private exporters reported the sale of 229,000 tonnes of Corn for delivery to Japan in MY 2017-18. It was the 2nd day running that the government has announced a Flash Corn sale.