Soybeans, wheat and corn fall on profit taking
Soybeans lose ground as funds liquidate positions
Monthly USDA report expected on Thursday
Updates with closing prices
By Heather Schlitz
CHICAGO, Sept 6 (Reuters) -Chicago soybean futures slid on Friday on expectations of large U.S. yields and profit taking following a rally earlier in the week sparked by speculators unwinding large short positions, traders said.
Wheat and corn futures also dipped as funds sought profits and positioned ahead of two U.S. Department of Agriculture reports that will be released next week.
All three crops were nevertheless on track for weekly gains.
The most-active wheat contract on the Chicago Board of Trade Wv1 settled down 7-3/4 cents to $5.67 per bushel but settled up 2.8% for the week.
CBOT soybeans Sv1 settled down 18-1/2 cents to $10.05 per bushel and settled up 0.5% for the week. Corn Cv1 settled down 4-1/2 cents to $4.06-1/4 per bushel.
The rallies were driven by speculators unwinding some of their hefty short positions. A weaker dollar and some concerns over dry weather in the U.S. Midwest had encouraged short covering in previous days, traders said.
Light rain is expected across chunks of the U.S. Midwest, a note from Commodity Weather Group said, but it may be too little too late to ensure the soybean crop has enough moisture to reach its yield potential.
Many traders are waiting for the U.S. Department of Agriculture to release its September crop estimates next week before making big moves.
"The USDA report next Thursday is expected to confirm high yields, but whether they'll be as high as what was reported remains to be seen," Brian Basting, analyst at Advanced Trading, said.
Wheat prices have been supported by reports of poor harvests in Europe, notably in the largest producer France, set to yield the smallest volume in more than 40 years while also producing mixed grain quality after heavy rain and limited sunshine during the growing season.
However, cheap wheat from Russia and increasing exports from Ukraine have maintained pressure on U.S. wheat futures.
Reporting by Heather Schlitz in Chicago. Additional reporting by Peter Hobson and Sybille de La Hamaide; Editing by Rashmi Aich, Jan Harvey and Alexander Smith and Aurora Ellis
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
