Chicago | Reuters — U.S. corn and soybean futures jumped more than one per cent on Friday on bargain buying after steep losses during the past two sessions, traders and analysts said.
Midday weather forecasts also predicted hot temperatures next week in the U.S. Midwest, potentially stressing developing crops and further buoying corn and soy prices at the Chicago Board of Trade.
CBOT wheat futures were mostly narrowly lower while MGEX spring wheat gained.
“Some people who went short are taking profits and people are buying into the weather model changes. We’re turning into another hot and dry pattern,” said Futures International analyst Terry Reilly.
CBOT September corn futures settled 6-1/2 cents, or about two per cent, higher at $3.76-1/4 per bushel (all figures US$). CBOT August soybeans were up 13-1/2 cents, or 1.5 per cent, to $9.89 per bushel. Each contract declined for the week, with corn shedding 3.6 per cent and soybeans 1.3 per cent.
Prices plummeted on Wednesday following a U.S. Department of Agriculture report showing ample global grain and soy supplies and extended those losses on Thursday amid weather outlooks for slightly reduced heat levels.
“We had a death break Wednesday and Thursday. Now it’s Friday and we have a little backfill here,” Highground Trading broker Scott Capinegro said.
In Tuesday’s session, when prices were still rallying, speculative investors switched to a net long in corn and drastically reduced their net short in soybeans, a Commodity Futures Trading Commission weekly report showed on Friday.
USDA earlier said exporters sold 1.3 million tonnes of soybeans to China, an announcement that followed a Thursday signing ceremony between Chinese soy buyers and U.S. sellers in Iowa.
Most wheat futures contracts were under pressure from unwinding of long wheat and short corn spreads, Reilly said.
CBOT September wheat finished one cent lower at $5.10-3/4 per bushel and the most active CBOT wheat contract declined 4.2 per cent this week, the biggest percentage weekly drop since April.
— Michael Hirtzer reports on commodity markets for Reuters from Chicago. Additional reporting for Reuters by Nigel Hunt in London and Colin Packham in Sydney.Tagged cbot, closing markets, corn futures, soybean futures, USDA, wheat futures