Chicago | Reuters — Chicago soybean futures firmed on Friday, following the U.S. Agriculture Department’s monthly supply and demand report showing a drop in harvested U.S. acres, though much of the reports findings had been anticipated by earlier trading.
Corn traded near even, while wheat edged lower after touching a new seven-week low, pressured by easing concerns about global export supplies.
The most-active soybean contract on the Chicago Board of Trade (CBOT) added 16 cents to $12.86-1/2 a bushel, notching its biggest gain since Aug. 24, though the most-active contract lost 0.43 per cent for the week (all figures US$).
CBOT corn ended 7-1/2 cents higher at $5.17-1/2 a bushel, after dipping to $4.97-1/2, its lowest since Jan. 25, 2021, logging a 1.24 per cent weekly loss.
Wheat ended 3-3/4 cents lower at $6.88-1/2 a bushel after touching its weakest since late July. The most-active contract saw its biggest weekly decline since the week ended July 9, losing 5.2 per cent for the week.
The U.S. Department of Agriculture’s monthly supply and demand report increased U.S. corn and soybean production, though much of the agency’s findings were already accounted for by recent sell-offs, traders said.
“A lot of bearish info already baked into the market, it appears,” said Bill Lapp, president of Advanced Economic Solutions. “It’s been a pretty nice slide downward since the Aug. 12 report.”
U.S. corn production will reach 14.996 billion bushels, the report showed, its second biggest harvest on record, while soybean production was seen at 4.374 billion bushels, the third largest for the oilseed.
Soybeans were also buoyed by a daily sales notice of 132,000 tonnes of U.S. soybeans to China for 2021-22 delivery.
The U.S. market has been curbed by disruption to U.S. Gulf export terminals following Hurricane Ida.
“We’ve got the Gulf situation that is still an absolute mess,” said Karl Setzer, commodity risk analyst at Agrivisor. “It’s going to take more than what’s in this release to change trade’s attitude.”
China has lowered its 2021-2022 outlook for consumption of corn use in animal feed as hog prices stay low, the agriculture ministry said on Friday.
The wheat market has faced supply pressure after an increase in Canadian stocks and improved harvest prospects in Australia and Argentina.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.