Grain futures mixed, wheat pares weekly decline on unfavorable weather

Grain futures were mixed on Friday with soybeans slightly declining, while corn and wheat posted a moderate advance as unfavorable weather in parts of the U.S., South America and Europe threatened to slow field work.

On the Chicago Board of Trade, soybeans futures for delivery in November fell by 0.03% to $13.0863 per bushel by 10:39 GMT. Prices held in range between days high of $13.1288, near Wednesdays one-month high, and days low of $13.0500 per bushel. The oilseed added 0.1% on Thursday and extended its weekly advance to 1.4% on Friday.

Soybeans marked a minor retreat as weather forecasting models called for favorable harvest conditions in the Midwest during the weekend. DTN reported on October 24 that cold but dry weather in the region will benefit field work through the end of the week, but will give way to rains next week which will cause delays. In Brazil, heavy rains over the Rio Grande do Sul and southern Parana states are poised to slow corn and soybean planting.

The oilseed also drew support after the U.S. Department of Agriculture reported yesterday that U.S. exporters sold 929 752 tons of soybeans for delivery before September 30 in the week ended October 3. This was more than twice the amount sold during the same period a year earlier. The top buyer was China, the worlds biggest consumer. The USDA said in its latest WASDE report on September 12 that Chinas soybean overseas purchases may surge 16% from a year earlier to 69 million tons, while corn imports may more than double to 7 million tons.

On the Chicago Board of Trade, corn futures for settlement in December rose by 0.14% to $4.4163 per bushel by 10:30 GMT. Prices varied in a days range between $4.4188 and $4.3963 per bushel. The grain fell by 0.6% on Thursday but rose back to positive weekly territory on Friday.

DTN said yesterday that apart from the heavy rains that will disrupt field work in Brazils Rio Grande do Sul and southern Parana regions, minimal rain in Argentinas corn belt will continue to provide unfavorable conditions for corn developing during the next seven days.

Wheat pares weekly decline

Wheat rose on Friday on concern that low temperatures in Argentina may cause freezing damage to the wheat crop. Wheat futures for Settlement in December rose by 0.52% to $7.0063 per bushel by 10:38 GMT. Prices shifted in a days range between $7.0188 and $6.9513 per bushel respectively. The grain shed 0.8% on Thursday but trimmed its weekly decline to less than 0.7% on Friday.

DTN reported on October 24 that mostly favorable weather conditions and soil moisture in the U.S. Southern Plains will support the crop in all areas. However, heavy rains in Brazils Rio Grande do Sul and southern Parana during the next three days might damage the plants, DTN said.

The agency also said that lows in southern Argentina on Thursday and Friday were expected to be between 35 and 37 degrees Fahrenheit (1 to 3 degrees Celsius), which will likely mean a light freeze, putting heading and flowering wheat at risk of damage.

The U.S. Department of Agriculture reported recently that China committed to import 3.9 million tons of U.S. wheat this marketing year, up from 408 000 tons from a year earlier, as unfavorable weather disrupts crop developing in China and South America. Researcher Oil World said on October 22 that the worst drought in South America’s biggest exporter, Argentina, resulted in “irreversible damage” to the crop.

DTN also reported yesterday that cool and wet conditions continue to delay the harvest of late-summer crops and planting of winter wheat and rapeseed in Europe, but a warmer trend already began in Western Europe and is expected to continue into next week.