(Nasdaq) – U.S. soybean futures fell as profit-taking hit the oilseeds following a run-up in their price.
Wheat rose and corn was mixed.
Soybean futures closed lower after gaining early in the session following a rally the previous day. As the session opened, the U.S. Department of Agriculture reported strong export sales for the oilseeds and an additional export order that bolstered confidence in demand for U.S. supplies. That came after the USDA the previous day trimmed its estimates for the previous year’s U.S. production, which means fewer stocks in the U.S.
The oilseeds rallied on the news.
But soon after, traders, with an eye on what will likely be a bumper harvest this fall, began selling, taking profits while projecting that ample supplies will dampen prices.
Chicago Board of Trade soybean futures for November delivery shed 14 3/4 cents, or 1.7%, to $8.77 1/4 a bushel.
Wheat futures rallied during the session to the highest price for a front-month contract since Aug. 11 after the U.S. Department of Agriculture released estimates for stockpiles and production the previous day below analyst expectations. U.S. wheat inventories as of Sept. 1 totaled 2.089 billion bushels, up from 1.907 billion a year earlier, according to the USDA. Analysts had forecast 2.165 billion bushels.
In a separate report Wednesday, the USDA projected 2015 domestic wheat production of 2.052 billion bushels, down from last month’s forecast of 2.136 billion and lower than analysts’ expectations for 2.139 billion.
Concerns that unfavorable weather may restrict supplies in other parts of the world, particularly the Black Sea region and Australia, also supported prices by boosting confidence about increased demand for U.S. wheat supplies, analyst said.
CBOT December wheat closed below its intraday high, finishing up 5 1/2 cents, or 1.1%, at $5.18 1/4 a bushel.
Corn futures were mixed, with CBOT December corn rising 1 cent, or 0.3%, to $3.88 3/4 a bushel.
