CNS Canada — Soybeans and corn at the Chicago Board of Trade have seen weather-related support from traders in previous sessions, but one U.S. analyst expects prices to move lower with profit-taking.

Soybeans — “We’re finally getting some weather stories here,” said John Weyer, director of Walsh Trading’s commercial hedging division.

Heavy rainfall and flooding in South America have caused soybean prices to move higher on the week, but traders are also watching wet domestic weather, Weyer added.

“Talking to a lot of farmers throughout the Midwest, they saw this weather pattern come in so they did all they could to get stuff in the ground,” he said.

Since last week, soybeans have gained 18.5 cents per bushel in the July contract (all figures US$).

Soybeans have upside potential, Weyer said, but he thinks profit-taking will drive prices lower.

“I’m not saying we’re going to go straight back down,” he said. “But when we talk about July beans we see that they’ve had a strong run up the past week.”

He pegged the upside target for soybeans at $10.4325, if investors continue to focus on buying, but if they choose to sell, the downside is near $10.05 per bushel.

Corn — Prices have already lost ground due to investor profit-taking, but domestic weather issues have limited losses.

Several corn-growing regions in the U.S. face colder temperatures, post-rainfall, which have hampered seeding.

“There’s a bit of a hangover effect from that,” Weyer said. “But most of these guys I’ve talked to have tried to get everything in the ground as much as they could ahead of these storms.”

The corn market has lost 15 cents per bushel in the July contract since last week.

The upside for corn prices is near $3.90 per bushel, and $3.78 on the downside.

— Jade Markus writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.