Views Article – Sharenet Wealth

News, North America

End-of-month profit taking pressures U.S. wheat, corn, soybeans

(Updates with closing prices)

By Mark Weinraub

CHICAGO, Feb 26 (Reuters) – Chicago Board of Trade wheat futures slid 2.8% on Friday, their second straight day of declines, on a profit-taking setback as warming weather in the United States reduced the threat of damage to the dormant crop, traders said.

Corn and soybean futures also were weaker but closed well above session lows after finding technical support. Traders said that a lack of export activity this week, even with Chinese buyers back on the market following the Lunar New Year celebrations, was seen as a bearish sign.

“A bull market needs to be fed everyday,” said Mark Gold, founder of Top Third Ag Marketing. “We just do not see export numbers justifying these kind of prices.”

All three commodities posted weekly gains. Soybeans rose 1.5% this week, and hit a 6-1/2-year high on Thursday.

CBOT May soybean futures were down 3-1/4 cents at $14.04-1/4 a bushel.

Soybeans ended February with a ninth consecutive monthly gain, against a backdrop of dwindling U.S. stocks and a rain-slowed Brazilian harvest that have raised uncertainty about availability to meet strong Chinese demand.

But in China, soybean crushers are expected to curb activity due to Brazilian harvest delays, while fresh outbreaks of African swine fever have created concern about feed demand.

CBOT May wheat was off 15-1/2 cents at $6.60-1/4 a bushel and CBOT May corn was down 2-1/4 cents at $5.47-1/2 a bushel. Corn futures rose 0.7% this week while wheat was up 1.7%.

Many analysts and traders still see global supply tensions supporting grain prices.

“There is a bit of profit-taking, but overall we are still bullish, especially for soybeans and corn,” said Ole Houe, director of advisory services at brokerage IKON Commodities.

“We are just about to enter the critical March-May planting season in the Northern Hemisphere, so there is plenty of risk ahead.” (Reporting by Mark Weinraub Editing by Marguerita Choy and John Stonestreet)

© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.