US soy, corn futures face pressure from improved harvest outlook

 

 

US soy and corn futures retreated from recent highs at the CBOT Thursday (Oct 15), with farmers expected to resume harvesting crops around the US Midwest following rain delays, traders said.

 

Delays in harvesting what is expected to be the largest soy crop ever and the second-biggest corn crop sparked a rally that pushed corn futures to a 3-1/2 month high this week. Soy prices rose to their highest level in a month due to the delays.

 

But new weather outlooks suggested many growers will be able to get back in the fields during the next few days. Corn prices fell 2.6 percent and soy prices slid 1.1 percent.

 

Following periods of light rain and drizzle through Friday, skies should turn mostly clear Saturday through Monday west of the Mississippi River, according to DTN Meteorlogix forecaster Mike Palmerino.

 

CBOT November soy closed down 11 cents at US$9.83 a bushel while the December corn contract was off 10 cents at US$3.73 a bushel.

 

Wheat futures also were under pressure, falling 1.6 percent after a spate of short-covering pushed futures to their highest level since early August.

 

CBOT December wheat settled down 8 cents at US$5.05 a bushel.

 

Abundant global supplies continued to pressure wheat prices despite a flurry of activity on the export market. On Thursday, Algeria's state grains agency relaunched a tender to buy a nominal 50,000 tonnes of milling wheat. Countries such as Iraq and Egypt also have been active on the export market this week.

 

Weakness in the equities market also cast a bearish tone over grain prices Thursday. The Dow Jones industrial average's rally to 10,000 had helped support corn, soy and wheat this week.