Chicago | Reuters—U.S. soybean and corn futures closed lower on Thursday after touching six-week lows, with both markets facing pressure from hefty South American supplies, traders said.
Corn futures drifted lower as traders monitored the spread of corn stunt disease in Argentina, the world’s No. 3 exporter of the feed grain.
Meanwhile, wheat futures turned higher as drought intensified in portions of the U.S. Plains winter wheat belt.
Chicago Board of Trade (CBOT) most-active July soybeans SK24 settled the day down 15-1/4 cents at $11.49 a bushel. CBOT July corn CN24 closed down 4-3/4 cents at $4.36-1/4 a bushel, while CBOT July wheat WN24 settled up 3/4-cent at $5.53 a bushel.
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Soybean futures were pressured in part by an influx of Brazilian farmer sales as the Brazilian real fell this week to its lowest since March 2023, making dollar-denominated soybeans worth more.
“We saw a lot more South American selling because of the decline in the Brazilian real,” said Nathan Losey, senior analyst with AgResource Company.
Brisk export demand for Brazilian soy has helped to lift cash prices in recent weeks, analysts said, while curtailing demand for U.S. supplies.
The U.S. Department of Agriculture on Thursday reported export sales of U.S. soybeans in the week ended April 11 at 485,800 metric tons, in line with trade expectations.
Wheat futures firmed, bucking the declines in soy and corn.
“We’re seeing a bit of strength in the hard red wheat markets as dry weather takes its toll on the Plains crop,” Arlan Suderman, chief commodities economist with StoneX, wrote in a client note.
The USDA reported that 24 per cent of the U.S. winter wheat crop was located in a drought area as of April 16, up from 18 per cent a week earlier. However, said Suderman, “cheap Black Sea exports continue to keep a lid on the market.”
—Additional reporting for Reuters by Peter Hobson in Canberra and Sybille de La Hamaide in Paris
