(Nasdaq) – U.S. grain futures fell Monday, weighed down by benevolent weather in the U.S. Midwest and ample global supplies of some crops. Soybeans were higher.
Wheat prices led the declines, falling after a busy harvest weekend for U.S. growers of spring wheat. Analysts said recent good weather in the northern Plains allowed wheat farmers there to make steady harvest progress ahead of rains predicted for the region this week. The freshly harvested grain adds to already plentiful world supplies, pressuring prices, analysts said.
A higher U.S. dollar and tepid demand for domestic wheat also pressured prices. The stronger currency dulls export demand by making the grain more expensive for foreign buyers.
“The U.S. still is not getting a lot of the world export business,” said Brian Hoops, president of brokerage Midwest Market Solutions in Springfield, Mo., adding that “we’re not really competitively priced.”
Wheat for September delivery fell 6 cents, or 1.2%, to $5.00 1/2 a bushel at the Chicago Board of Trade.
Corn prices also closed lower, buffeted by forecasts for good growing conditions through the end of August, which promise to benefit maturing corn crops. Scattered rain showers likely will water most of the Farm Belt over the next two weeks, analysts said.
Still, losses were limited as traders awaited reports from crop scouts on an annual tour of Midwest farms this week. Analysts said the field assessments will help confirm or refute unexpectedly large crop forecasts made by the U.S. Department of Agriculture earlier in August.
“We’re hearing about lots of variable yields in Indiana and Ohio,” said Mr. Hoops, adding that “in the western Corn Belt yield sound pretty outstanding everywhere so far.”
CBOT September corn fell 3/4 cent, or 0.2%, to $3.63 1/4 a bushel.
Soybean prices edged higher, supported by friendly data from the Farm Service Agency, a branch of the USDA, on the number of soybean acres that went unplanted this year.
Better-than-expected demand from domestic soybean processors also shored up prices for the oilseeds. According to data from the National Oilseed Processors Association, the U.S. soybean-crush rate rose to about 145.2 million bushels, compared to 142.5 million in July. Analysts had anticipated the crush rate would slow since some processors paused operations for seasonal maintenance in July.
Still, favorable weather forecasts for the U.S. Midwest capped gains in the market, analysts said.
CBOT September soybeans gained 1 3/4 cents, or 0.2%, to $9.27 a bushel.
