US Midday: Soy Surges, Corn Wheat Down
Posted by Labels: Commodity Market, Corn, soybean, USA, Wheat
US soybeans rose on Friday after a decline in prices to a one-month low spurred export interest, with a weak dollar and higher crude oil also supporting futures.
Corn and wheat futures edged lower, bucking support from a sharply lower greenback, on pressure from slow export demand and news that Britain's largest farmer co-op had signed a contract to supply wheat to a US feed maker.
Soybean futures for January delivery were up 6 cents at $11.73-1/2 per bushel as of 10:15 am CST (1615 GMT) after hitting the lowest price since October 10 on Thursday.
CBOT December corn was down 5 cents at $6.40-3/4 per bushel after briefly trading in positive territory, while CBOT December wheat eased 5-3/4 cents to $6.14-1/4.
US wheat plunged more than 3 percent and soybean futures fell to a one-month low on Thursday on disappointing exports and pressure from Europe's ongoing debt crisis.
Grains shrugged off a weak dollar one day after a sharply higher greenback dominated the market.
The dollar eased Thursday and the euro climbed as Italy moved closer to a national unity government, propping up equities and crude oil.
But the changes in Europe failed to draw investors back to grain and soybeans, traders said.
Wheat futures posted their biggest single-day decline in a month, with Chicago Board of Trade December wheat settling 23 cents lower at $6.20 per bushel, near its session low, while corn and soybean futures each dropped more than 1 percent.
"I am a little surprised that after the beating we took (Wednesday) that we continue to do this.
The outside markets are telling you things should be a little better," said Jack Scoville, analyst at The Price Group in Chicago.
Corn futures briefly traded higher, underpinned by the US Department of Agriculture's bigger-than-expected cut in US yield in its report on Wednesday.
The report also raised its estimate of US soybean ending stocks next summer and reduced exports, while trimming by 100 million bushels the amount of corn used for feed.
CBOT December corn ended 10-1/2 cents lower at $6.45-1/2 per bushel and CBOT January soybeans down 18 cents at $11.67-1/2.
Soy imports by China, the No 1 global soybean buyer, were down more than 7 percent in October and the lowest since March, Chinese customs data showed on Thursday.
The United States has struggled to compete in the export market amid cheaper wheat and corn supplies from the Black Sea region.
USDA in its monthly crop report on Wednesday lowered its forecast for US exports of hard red winter wheat.
USDA early on Thursday said US wheat exports last week totalled 298,400 tonnes, below trader estimates that reached 450,000 tonnes.
Top global wheat importer Egypt also purchased wheat in a tender from Ukraine and Russia.
US corn exports last week also disappointed, with sales totalling 251,800 tonnes, below estimates ranging from 550,000 to 750,000 tonnes.
Soybean exports came in at 606,800 tonnes, narrowly above the high end of trader expectations.
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