MARKET DEVELOPMENT
Grains Close Lower, Soybean Futures Finish Session Higher
Grains Close Lower, Soybean Futures Finish Session Higher
22/03/2017 (Agriculture.com) - Corn and wheat futures closed lower on Tuesday while soybean futures reversed course and finished higher.
Prices had been lower across the board after 2 to 4 inches of rain fell in central and northwest Mato Grosso, a major growing state in Brazil, over the weekend, according to Commodity Weather Group. Futures also declined after Agroconsult, a Brazilian agriculture consultancy, raised its soybean harvest outlook to 111 million metric tons, up from 108 million. The U.S. Department of Agriculture said earlier this month that Brazil would produce 108 million tons of soybeans, up from a prior projection of 104 million tons.
Soybeans, however, rebounded after the price of palm oil, a competing cooking oil, had its biggest intraday gain in a week on the Malaysian Exchange. The decline to about $9.95 a bushel for soybeans in overnight trading also may have brought in some buyers looking for a bargain.
Wheat futures declined on speculation that it may rain in the southern Plains this week. If that happens, it will be the first round of precipitation in more than a month, according to the National Weather Service. Still, the area only has a small chance of seeing rainfall, which would start Thursday, the NWS said.
Corn futures for May delivery fell 2¼¢ to $3.61¼ a bushel on the Chicago Board of Trade. Wheat futures lost 4¼¢ to $4.26 a bushel, and Kansas City wheat declined 7¼¢ to $4.38 a bushel.
Soybeans rose 1¼¢ to $10.00¾ a bushel in Chicago. Soy meal futures fell 80¢ to $325.80 a short ton, and soy oil added 0.35¢ to 33.09¢ a pound.
Prices had been lower across the board after 2 to 4 inches of rain fell in central and northwest Mato Grosso, a major growing state in Brazil, over the weekend, according to Commodity Weather Group. Futures also declined after Agroconsult, a Brazilian agriculture consultancy, raised its soybean harvest outlook to 111 million metric tons, up from 108 million. The U.S. Department of Agriculture said earlier this month that Brazil would produce 108 million tons of soybeans, up from a prior projection of 104 million tons.
Soybeans, however, rebounded after the price of palm oil, a competing cooking oil, had its biggest intraday gain in a week on the Malaysian Exchange. The decline to about $9.95 a bushel for soybeans in overnight trading also may have brought in some buyers looking for a bargain.
Wheat futures declined on speculation that it may rain in the southern Plains this week. If that happens, it will be the first round of precipitation in more than a month, according to the National Weather Service. Still, the area only has a small chance of seeing rainfall, which would start Thursday, the NWS said.
Corn futures for May delivery fell 2¼¢ to $3.61¼ a bushel on the Chicago Board of Trade. Wheat futures lost 4¼¢ to $4.26 a bushel, and Kansas City wheat declined 7¼¢ to $4.38 a bushel.
Soybeans rose 1¼¢ to $10.00¾ a bushel in Chicago. Soy meal futures fell 80¢ to $325.80 a short ton, and soy oil added 0.35¢ to 33.09¢ a pound.