Chicago | Reuters—Chicago wheat, corn and soybean futures chopped up and down but ended lower on Friday as traders weighed a bounce in demand fuelled by low prices against expectations of ample supply and upcoming U.S. government crop forecasts.
All three crops had rebounded in the previous session after wheat struck a five-year low, soybeans a four-month trough and corn contract lows during Wednesday’s session.
The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 fell 3-3/4 cents to $5.14-1/2 a bushel. CBOT corn Cv1 fell 1-1/2 cents to close at $4.05-1/2 per bushel, and CBOT soybeans Sv1 settled 6-1/4 cents lower to $9.87-1/2 per bushel.
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Higher than anticipated weekly U.S. export sales reported by the U.S. Department of Agriculture had supported Thursday’s bounce, suggesting low prices were generating demand.
A series of flash sales of corn in recent days to Mexico, Guatemala and unknown destinations have also helped support prices.
Short-covering also helped wheat and corn prices rebound as traders exited their positions ahead of an upcoming USDA report.
Grain markets are now shifting their focus towards monthly USDA supply and demand projections due on Tuesday, which will be closely watched for revisions to expected U.S. corn and soybean production.
The U.S. is expected to produce bumper corn harvests later in the year. Analysts polled by Reuters think the U.S. Department of Agriculture will raise its estimates in a monthly report due on August 12.
Expectations of plentiful supply have weighed heavily on prices as growing conditions for U.S. corn and soybeans appeared ideal.
“Cosmetically the crops all look really really good,” Mark Schultz, analyst at Northstar Commodity, said.
—Additional reporting by Gus Trompiz and Peter Hobson
