U.S. grains: Soybean, corn futures fall; wheat mixed

Chicago/Reuters – Chicago Board of Trade soybean futures fell on Friday, pressured by profit-taking and the cancellation of an export deal with China, traders said.

Wheat futures were mixed, with CBOT soft red winter wheat and K.C. hard red winter wheat edging higher on some end-of-month short-covering. MGEX wheat fell on forecasts for a bumper crop in the northern U.S. Plains.

Hefty harvest expectations also weighed on corn after near-ideal weather for crop development around the U.S. Midwest throughout July.

The weather also pressured soybeans, which had risen for three days in a row.

“The weather so far is non-threatening,” said Don Roose, president of brokerage U.S. Commodities in West Des Moines, Iowa. “We are moving into August and that is the important time for soybeans so keep your eye on the sky.”

Chicago Board of Trade August soybeans settled down 9-1/2 cents at $9.80-3/4 a bushel. The new-crop November contract was 9-3/4 cents lower at $9.40-1/4 a bushel.

Private exporters reported that Chinese buyers canceled a deal to buy 200,000 tonnes of U.S. soybeans for delivery during the 2014/15 crop year, the U.S. Agriculture Department said on Friday morning.

CBOT wheat, which fell nearly 19 per cent during July, received additional support from surprise export activity. Overseas demand for U.S. wheat has been constrained by plentiful global supplies and cheaper offerings from competitors in the Black Sea region. The monthly decline was the biggest since June 2011.

But USDA on Friday said private exporters reported deals to ship 126,900 tonnes of U.S. wheat to unknown destinations during the 2015-16 crop year.

CBOT September soft red winter wheat ended up 2-3/4 cents at $4.99-1/4 a bushel. Kansas City hard red winter wheat also firmed but MGEX spring wheat dropped on expectations of a big spring wheat harvest in the United States.

Crop scouts on the U.S. Wheat Quality Council’s annual three-day tour of North Dakota and adjacent states on Thursday forecast spring wheat yield potential at 49.9 bushels per acre, the biggest forecast ever for the tour.

CBOT September corn futures ended 2-1/4 cents lower at $3.71 a bushel.

For the month, corn futures fell 10.2 per cent, while CBOT soybeans dropped 7.3 per cent.

Additional reporting by Nigel Hunt in London.

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