Chicago corn and soybean futures were steady on Friday after declines in the previous session, as traders focused on rain forecasts in Argentina.
Wheat weakened due to stiff export competition.
Trading was subdued as market players prepared for a three-day holiday weekend in the United States and awaited guidance on US trade policy when Donald Trump returns to the White House on Monday.
The most active corn contract on the Chicago Board of Trade (CBOT) rose 0.3% to $4.75-3/4 a bushel at 1333 GMT, while soybeans rose 0.7% to $10.26 a bushel.
Corn and soybeans fell sharply on Thursday in profit-taking after hitting one-year and three-month highs, respectively, earlier in the week.
Drought conditions in Argentina and larger-than-expected supply cuts by the U.S. Department of Agriculture have pushed up corn and soybean prices in the past week.
But Argentina’s crop center will see rain at the end of this week, although hot and dry weather may return next week.
“The weather in Argentina is improving, which could put more pressure on corn and soybeans,” said Andrey Sizov, head of crop consultancy Sovecon.
“Trump’s inauguration and decisions/statements on tariffs, which first began on January 20, are probably the biggest topics in the short term,” he said.
The corn rally was met with a rush of selling by US farmers, prompting speculators to sell as well on Thursday.
The fund has a large net long on CBOT corn, making the market vulnerable to liquidation attacks.
Soybean markets remain fixated on the prospect of a record harvest in Brazil. Agroconsult is the latest forecaster to predict Brazil will harvest more than 170 million tonnes of soybeans this season.
CBOT wheat fell 0.6% to $5.34-1/2 a bushel.
Despite this week’s decline from its highest level in two years, the dollar’s strength against other major currencies is still a burden for US wheat as it faces competition from cheaper wheat supplies from the Black Sea and Argentina.
Source: Reuters
