(Agriculture.com) – Corn and soybeans closed lower as fears of increased exports from Argentina trumped concerns about dry weather in Brazil.
Futures earlier had traded higher Monday on speculation that dryness in some parts of Brazil would lead speculative investors who were short the market, or bet on lower prices, to buy back contracts.
Soil moisture is expected to remain short in northern Mato Grosso, northern Goias, northern Minas Gerais and northern Mato Grosso do Sul, said Donald Keeney, a senior agricultural meteorologist with MDA Weather Services. Southern Sao Paulo, Rio Grande do Sul, Santa Catarina and Parana will remain wet.
Fears that Argentina would increase after its newly elected president slashed export taxes and cut currency controls, improving the appeal of the country’s grains and oilseeds to overseas buyers won out, causing prices to drop.
Prices also fell as investors and growers sell contracts and close out positions ahead of year’s end.
Soybean futures for January delivery fell 2 cents to $8.90 ¼ on the Chicago Board of Trade. Soymeal for January delivery declined $2.40 to $278.60 per short ton. Soyoil rose 0.25 cent to 30.78 cents a pound.
Corn futures for March delivery declined 2 ¼ to $3.72 ¼ a bushel in Chicago.
Wheat futures declined after Russia is reportedly considering lowering export taxes on the grain next year, which could curb demand for U.S. supplies, according to Interfax.
Wheat futures on the Chicago Board of Trade lost 6 ½ to $4.80 ¼ a bushel. Kansas City wheat futures fell 8 ¼ to $4.74 a bushel.
