Chicago | Reuters — Chicago corn futures posted a third straight weekly decline on Friday, as traders reacted to a government forecast that U.S. farmers will produce a record-large crop this year.
Wheat was lower, following corn. Commodity funds hold a sizeable net short position in Chicago wheat futures, leaving the market prone to volatility and bouts of short-covering.
Soybean futures rose, supported by technical buying.
Chicago Board of Trade’s (CBOT) most-active December corn futures settled down four cents at $4.64 per bushel (all figures US$). For the week, the contract fell 15-1/2 cents a bushel or nearly 2.8 per cent.
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The downturn came a day after the U.S. Department of Agriculture (USDA) raised its estimate for the nation’s 2023-24 corn crop to 15.234 billion bushels in a monthly report, from 15.064 billion in October.
“The corn market is still dealing with the aftermath of yesterday’s USDA report,” said Dale Durchholz, a commodity risk consultant in Bloomington, Illinois. “Some people are probably thinking the corn crop is even a little bit larger yet.”
A recovery in crude oil after losses this week also lent some support to grains on Friday.
CBOT December soft red winter wheat settled down 5-1/2 cents at $5.75-1/4 per bushel, while most-active January soybean futures settled up four cents to $13.47-1/2 per bushel.
A wave of Chinese purchases of U.S. soybeans lifted the oilseed.
Brazilian crop agency Conab raised its forecast for Brazil’s 2023-24 soybean crop.
— Brendan O’Brien is a Reuters breaking news reporter in Chicago.
