SINGAPORE- Chicago soybean and corn futures lost ground on Thursday, giving up some of last session’s gains, as forecasts of rains in parched areas of the US grain belt weighed on the market.
The wheat market faced pressure, falling for a second session, with expectations of higher supplies from Ukraine easing world supply concerns.
“The more benign weather in the western US Midwest has tempered the market’s rally reflex for now,” said Tobin Gorey, director of agricultural strategy at the Commonwealth Bank of Australia.
“Weather forecasters have another useful rain event penned in those same regions about a week out. The evolution of forecast for that event will likely remain an influence into next week.”
The most-active soybean contract on the Chicago Board of Trade (CBOT) lost 0.5 percent to $13.82-3/4 a bushel, and corn gave up 0.2 percent to $6.10-3/4 a bushel. Wheat fell 0.3 percent to $7.78 a bushel.
Forecasts for rain this week in dry western parts of the US Midwest are adding pressure on soybean prices, as the crop finishes filling out through the end of August. US corn crop is also likely to benefit from rains.
The wheat market is facing headwinds on higher Ukrainian supplies.
Ukraine expects five ships to arrive at its Chornomorsk Black Sea port on Wednesday for loading with more than 70,000 tons of agricultural products, the largest convoy so far under a U.N.-brokered grain export deal.
The Ukrainian sea ports authority said in a statement that the new cargoes would include wheat, corn and sunseed oil. — Reuters