Chicago | Reuters — Chicago wheat futures moved lower on Friday as traders weighed improved yield prospects in the U.S. Plains, though brisk export demand limited losses, traders said.
Soybean prices steadied after tumbling on Thursday, while corn sank on ideal planting and growing conditions in the U.S. Midwest.
CBOT July soybeans closed 1-1/4 cents lower to $10.50 per bushel. Soybeans had reached their highest price since late July on Wednesday, buoyed by this week’s de-escalation in the U.S.-China tariff stand-off, before dropping 2.5 per cent on Thursday.
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CBOT July corn closed five cents lower at $4.43-1/2 per bushel, and CBOT July wheat fell 7-3/4 cents to $5.25 per bushel.
Soyoil futures consolidated on Friday after plunging to their daily limit in the previous session as uncertainty over a U.S. biodiesel mandate hung over the market.
The biofuel sector is still awaiting clarification after the U.S. Environmental Protection Agency said on Thursday it had sent its proposal on future biofuel blending mandates to the White House for review.
Meanwhile, beneficial planting and growing conditions for the corn and soy crop in the U.S. Midwest have also put more pressure on futures.
Favorable U.S. wheat harvest prospects have outweighed bullishness from increased export demand and threats to China’s wheat crop, traders said.
“When you look at improved growing conditions, it’s hard to justify a major rally in wheat,” Jack Scoville, vice president of Price Futures Group, said.
A crop tour in Kansas, the top U.S. wheat-growing state, projected the highest yield in four years as the region’s crop was boosted by timely rain.
U.S. export sales of wheat for the week ended May 8 totaled 804,800 tonnes, beating analyst expectations, according to the U.S. Department of Agriculture.
China issued a warning on Friday of a high risk of dry, hot winds next week that could damage winter wheat crops in major producing areas, including Henan.
