U.S. corn and soybean futures hovered near three-year lows on Friday on improved crop weather in South America and forecasts of ample supplies, but short covering ahead of the weekend limited losses. Both markets posted weekly losses, with soybean falling for the eighth consecutive time and corn falling for the eighth time in nine weeks.
Wheat futures were higher on bargain hunting and short covering, as well as a weaker dollar. But this week the market turned lower for the fifth time in six weeks. Chicago Board of Trade (CBOT) March soybeans fell 10 cents to $11.8350 a bushel, just above this week’s low of $11.7925, the lowest level for the main contract since December 2020. March corn fell 4.25 cents to $4.29 a bushel after hitting a contract low of $4.2825. This is the lowest level of main contract since December 2020. CBOT March wheat rose 8.25 cents to $5.9675 a bushel.
According to Huitong Finance Observation, the results estimated by overseas traders show that this Friday (February 9), commodity funds increased speculative net long positions in CBOT wheat and increased speculative net short positions in soybeans, soybean meal, corn, and soybean oil.
Mike Zuzolo, president of Global Commodity Analysis, said the USDA report did not spell a bear case for corn, while U.S. and world soybean stocks were higher than trade estimates.
Corn and soybean markets remain focused on supply and demand forecasts released the day before by the United States Department of Agriculture (USDA) and Brazil’s National Ministry of Agriculture (Conab). Both sides have lowered their forecasts for Brazilian soybean and corn production in light of the recent drought. Consulting firm Safras & Mercado also lowered its forecast for Brazil’s soybean production on Friday. The U.S. Department of Agriculture lowered its forecast for global corn stocks in its monthly report on Thursday, but raised its forecast for world soybean stocks to a record high and lowered its forecast for U.S. soybean exports. Rains are expected in Brazil and Argentina, which have experienced heat waves over the past week, also easing concerns about pressure on corn and soybean crops.