Grain futures were mixed on Friday, with wheat hovering around 19-month lows on favorable weather conditions and a record-high global output. Meanwhile, corn and soybeans advanced.
On the Chicago Board of Trade, wheat futures for settlement in March declined by 0.12% to trade at $5.9688 per bushel by 13:33 GMT. Prices jumped to a session high of $6.0038, while day’s bottom was touched at $5.9638 per bushel. Yesterday prices touched $5.9588 per bushel, the weakest since May 2012. The grain slumped 22% in 2013, the largest annual decline since 2008, on expectations for a record-high global output of 711.42 million metric tons, according to data by the USDA.
Meanwhile, wheat prices received some support after the Egyptian state-run buying agency, the General Authority for Supply Commodities announced on January 2nd that it will issue a tender to purchase at least 60 000 tons of wheat today. Egypt is the worlds largest wheat importer.
DTNs January 2nd forecast called for freezing cold temperatures that may reach as low as minus 10 degrees Fahrenheit (minus 23 Celsius) in the next several days in the central and southern Plains and minus 25 degrees Fahrenheit in the Midwest, where wheat crops are dormant and will remain so.
Elsewhere on the grains market, soybeans futures for settlement in March traded at $12.7313 per bushel at 13:36 GMT, adding 0.25% on a daily basis. Prices swung between day’s high and low of $12.7788 and $12.6938 per bushel respectively. Yesterday prices touched $12.6262 per bushel, the lowest since November 8th. The oilseed settled the year 8.5% lower.
Corn up as well
Corn futures for March delivery traded at $4.2113 a bushel by 13:37 GMT, advancing 0.12% for the day. Futures held in a range between day’s high and low of $4.2262 and $4.2038 per bushel. Yesterday prices bottomed at $4.1862 per bushel, the lowest since December 2nd. The grain lost nearly 40% in 2013, the steepest annual drop on record, on projections that the global output will surge to 964.3 million tons in the 2013-2014 season, boosted by record production in the US, the world’s top producer.
Prices were supported by good weather conditions. DTN reported on January 2nd that increasing showers and thundershowers in Brazil at the end of this week will maintain favorable growing conditions for the developing soybeans and corn crops. Meanwhile, rain precipitation is expected on Thursday in Santa Fe and northern Buenos Aires provinces. Corn and soybeans will be favored by lower temperatures and the expected showers. Hot weather may redevelop as early as the weekend.
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