Grain futures mixed, wheat falls on favorable weather outlook

Grain futures were mixed on Monday with corn slightly advancing, while soybeans and wheat posted a moderate decline as mostly favorable conditions in the U.S. and South America supported the crop outlook.

On the Chicago Board of Trade, soybeans futures for settlement in January fell by 0.25% to $12.9013 per bushel by 11:10 GMT. Prices held in range between days high of $12.9425 and low at $12.8550, the weakest level since October 17. The oilseed shed 0.7% on Friday but settled the week 0.7% higher.

Meanwhile, corn for delivery in December rose to a session high of $4.3988 per bushel at 10:35 GMT, up 0.11% on the day. Days low stood at $4.3838 a bushel. The grain lost less than 0.1% on Friday and settled the week 0.3% lower.

DTN reported on October 25 that cold but dry weather during the weekend will support harvesting in the Midwest but some rain in the beginning of this week would cause delays to field work. In Brazil, rain was predicted to delay work from Rio Grande do Sul to Parana and possibly to Mato Grosso do Sul during the weekend but the recharged soil moisture would benefit already planted crops. Some rainfall in Mato Grosso was predicted to favor early soybeans development.

DTN also said on Friday that extended forecasting models called for much needed rains to support corn planting in central Argentina on Wednesday and Thursday.

Wheat falls

Meanwhile, wheat also fell as weather forecasters predicted favorable weather conditions for the developing of wheat in the U.S. and Eastern Europe. Wheat futures for settlement in December traded at $6.8913 per bushel at 11:12 GMT, down 0.18% on the day. Prices held in range between days high and low of $6.9113 and $6.8663 per bushel respectively. The grain lost 0.7% on Friday and settled the week 1.9% lower.

Wheat extended its decline after weather forecasters predicted favorable weather in major growing areas, easing stress on yields. DTNs forecast on Friday called for favorable conditions for planting and adequate soil moisture to continue supporting the development of wheat in the Southern Plains but some rains may develop in the next six to ten days. Rains in Brazils Rio Grande do Sul and Parana states were expected to cause some delays to the winter wheat harvest.

Prices were also pressured as temperatures in Argentina werent cold enough on Friday to cause freeze and harm heading wheat. DTN reported that weather will turn warmer this week and there were higher rain chances, which would favor crop development.

Meanwhile, Commodity Weather Group LLC said on October 25 that drier weather in Russia and Ukraine will benefit field work this week.

Michael Pitts, a commodity sales director at National Australia Bank Ltd. in Sydney, said for Bloomberg: “The Ukraine and Russian situation looks like it’s improved from two weeks ago in terms of plantings of new crop and harvest of old crop. Argentina hasn’t had rain and got some over the weekend, which is a little bearish in the short term.”

However, the grain drew support after GrainCorp Ltd., eastern Australia’s largest grain handler, said that yields in parts of New South Wales, Australia’s biggest wheat producer last year, may be reduced due to frost.