(Reuters) – Chicago corn and soybean prices slid on Friday as record U.S. harvesting nears completion, with both markets giving up some of last session’s gains driven by strong demand and slower farmer sales.
Wheat also dipped, tracking declines in corn, although losses were limited by harsh weather threatening crops in Russia and the United States.
Corn jumped almost 3 percent on Thursday after dropping to a two-week low earlier in the session as falling prices chilled farmer sales, and exports sales rose more than market expectations.
But all-time high U.S. corn and soybean production is likely to flood the market with supplies, weighing on prices, analysts said.
“After a four-day losing streak, the market was due for a bounce anyway,” Tobin Gorey, an analyst at Commonwealth Bank of Australia, said in a note to clients, referring to Thursday’s rally in corn prices.
“We’re not sure that the level is low enough yet and expect prices can fall another 20 cents or so. Weather forecasters expect warmer and drier conditions in the U.S. next week to allow harvests to close on completion.”
Even though corn and soybean prices recovered on Thursday, the markets are poised to close the week lower. Soybeans have dropped 0.7 percent, falling for a third consecutive week and corn is down 2.7 percent after rising 3.9 percent last week. Wheat has given up 2.8 percent after rallying almost 9 percent last week.
Chicago Board of Trade corn fell 0.5 percent to $3.71-1/4 a bushel by 0207 GMT on Friday and soybeans lost 0.6 percent to $10.14-3/4 a bushel. Wheat gave up 0.3 percent to $5.50-3/4 a bushel.
Private exporters struck deals to sell 101,600 tonnes of U.S. corn and 140,000 tonnes of U.S. soybeans to unknown destinations, the U.S. Department of Agriculture said.
It followed an earlier announcement of corn export sales last week of 908,700 tonnes, the largest in a month and above the high end of analysts’ expectations.
The decline in wheat is being limited by freezing temperatures threatening the U.S. winter wheat crop. And weather forecasters expect temperatures to fall low enough to damage unprotected wheat crops starting over the weekend in western Russia.
