Chicago | Reuters –– U.S. corn, soybean and wheat futures all closed modestly higher on Friday, recovering from early weakness on a mild round of technical buying.
All three commodities posted weekly gains but an ample supply base and rising export competition kept a bearish tone over the marketplace and checked Friday’s strength. Additionally, investors were wary of making big bets.
“Some traders (are) headed to the exits rather than get bruised by more volatile trading into the weekend,” Farm Futures senior analyst Bryce Knorr said in a note to clients.
Gains in soybeans were limited by expectations the South American export pace will pick up after slowing this week.
At least 11 ships are facing delays in loading soybeans at Brazil’s northern ports after rains washed out roads and disrupted the progress of trucks carrying beans from the centre-west region, Brazilian officials said on Thursday.
“The export flow may pick up again next week, provided weather conditions have allowed enough road repairs to take place,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.
Chicago Board of Trade May soybean futures settled up 1/4 cent at $10.37-1/2 a bushel (all figures US$). For the week, soybeans rose 1.2 per cent.
CBOT May corn rose 1-1/4 cent at $3.80-3/4 a bushel. Corn notched a weekly gain of 4.6 per cent, its biggest weekly rally in nine months.
Soybean and corn futures rallied sharply earlier this week, supported in part by reports of potential changes to U.S. biofuel policy to boost production. Corn is the primary U.S. feedstock for ethanol and soyoil is used in biodiesel.
“The biofuel rumours in the U.S. have thrown uncertainty and confusion back into the market. They come as U.S. farmers are deciding which spring crops to grow,” said David Sheppard, managing director at U.K. merchant Gleadell.
CBOT May wheat was 3/4 cent higher at $4.53-1/2 a bushel. Wheat futures rose one per cent this week.
Russia, among the world’s largest wheat exporters, is considering exporting part of its four million-tonne state grain stockpile to free up storage space before the new crop arrives, industry sources said.
— Mark Weinraub is a Reuters correspondent covering grain markets from Chicago. Additional reporting for Reuters by Nigel Hunt in London and Naveen Thukral in Singapore.