(Reuters) – Chicago soybeans slid for a second session on Friday as the market was weighed down by prospects of an all-time high U.S. crop, while corn was little changed after hitting a three-week top on a short-covering bounce.
The U.S. Department of Agriculture (USDA) has forecast record large soybean and corn harvests.
Last week, the agency pegged the corn crop at 15.153 billion bushels, based on an average yield of 175.1 bushels per acre, while the soybean harvest was seen at 4.060 billion bushels, with yields expected to average 48.9 bushels per acre.
Good weather for crop development during July across the U.S. Midwest, the key growing area for corn and soybeans, allowed crops to mature with relatively little stress. And rain in key U.S. growing areas in recent days has removed lingering doubts about crop development.
“It has been pretty volatile. Earlier there was some support as U.S. export sales look good,” said Phin Ziebell, agribusiness economist at National Australia Bank.
“But on the other hand production looks great and that is the problem. Long term story is of ample supplies.”
For the week, soybeans are set for a rise of about two percent, a second week of gains on the back of strong demand from top buyer China.
The USDA’s weekly export report on Thursday morning came in as expected. The report showed old-crop soybean export sales in the latest week totalled 177,900 tonnes and new-crop export sales 1.598 million tonnes.
It said export sales of old-crop corn in the latest week were 167,400 tonnes, below market forecasts. New-crop corn export sales of 1.043 million tonnes were in line with expectations.
For wheat, USDA said export sales totalled 489,500 tonnes, matching trade forecasts.
Earlier in the session, corn climbed to $3.43-1/4 a bushel, the highest since July 29. The market has gained 2.6 percent this week, after suffering two weeks of decline.
Corn has risen this week as investors are covering short positions after the market dropped last week to its lowest since October 2014.
