* Soybeans fall 1 percent as rains exit U.S. crop belt
* Forecasts promise dry spell; farmers to step up harvest
* Wheat higher on short-covering, technical strength
* Corn, wheat, soybeans on track to post weekly gains (New throughout; updates prices, adds quote; changes dateline, previous LONDON, changes byline)
By Julie Ingwersen
CHICAGO, Oct 17 (Reuters) – U.S. soybean futures were down 1 percent on Friday as clearing skies in the Midwest signaled a quicker pace in the harvest of a record crop and increased farmer selling, traders said.
Read Also
U.S. tariffs looming large over canola market
U.S. tariffs are one market headwind facing Canadian canola prices, but Chinese levies are another wrinkle coming down the pipe for farmers.
Corn futures also fell, while wheat climbed on a short-covering bounce.
At the Chicago Board of Trade, November soybeans were down 10 cents at $9.56-1/2 per bushel at 11:50 a.m. CDT (1650 GMT). December corn was down 2-1/2 cents at $3.49-3/4, and December wheat was up 4 cents at $5.21.
Forecasts called for mostly dry conditions across the Midwest for the next 10 days. The sunshine should dry saturated fields after a week-long rainy spell, especially in the southern half of the Corn Belt.
The U.S. Department of Agriculture said the U.S. corn harvest was only 24 percent complete by Oct. 12, compared with the five-year average of 43 percent. Soybeans were 40 percent harvested, compared with the average of 53 percent. Traders expect farmers to make up for lost time in the coming days.
“Monday’s Crop Progress Report is expected to show the bean harvest above 50 percent complete and the corn harvest above 30 percent complete. Good harvesting weather is expected to increase the pace of harvest, and pressure storage and transportation availability,” KCG Futures vice president Helen Pound wrote in a daily note.
Corn, soybeans and wheat were all on track to post weekly gains, reflecting recent harvest delays that slowed the flow of grain into marketing channels and a setback in the U.S. dollar from four-year highs. A softer dollar makes dollar-denominated grains more attractive to those holding other currencies.
Some analysts suggested grains could benefit from a shift in funds from struggling equity markets, while others said there could be spillover weakness from oil.
“Grain prices have been recovering since the beginning of the month but the supply/demand balance remains tilted towards plentiful supply,” Deutsche Bank said in a note on Friday.
“Indeed good harvests including a record one for soybeans have been confirmed by the USDA this week. Moreover, lower oil prices will tend to put downward pressure on grain prices.”
CBOT wheat drew support from technical buying as the December contract broke through resistance at its 50-day moving average of $5.19-1/2 and reached $5.22-1/4, its highest level in more than a month.
Funds hold a large net short position in CBOT wheat, leaving the market vulnerable to short-covering.
Prices at 11:44 a.m. CDT (1644 GMT)
LAST NET PCT
CHG CHG
CBOT corn 350.00 -2.25 -0.6%
CBOT soy 957.00 -9.50 -1.0%
CBOT meal 325.80 -2.80 -0.9%
CBOT soyoil 32.42 -0.20 -0.6%
CBOT wheat 520.75 4.00 0.7%
(Additional reporting by Nigel Hunt in London and Naveen
Thukral in Singapore; Editing by Mark Potter; and Peter
Galloway)
