Chicago agricultural commodities close lower as U.S. crop impresses scouts

Chicago Board of Trade (CBOT) grains futures closed lower Wednesday, as a widely watched crop tour reported bumper prospects across the U.S. Midwest.

The most active corn contract for December delivery was down 4.25 cents, or 1.26 percent, to 3.32 dollars per bushel. December wheat delivery fell 2.25 cents, or 0.53 percent, to 4.2375 dollars per bushel. November soybeans fell 29.75 cents, or 2.96 percent, to 9.755 dollars per bushel.

The annual four-day Pro Farmer Midwest Crop Tour observed on Thursday soybean crop prospects in southern Minnesota that were above average, and in line with last year. Soybean potential in eastern Iowa looked on par with recent years.

Late on Wednesday, the tour reported above-average soybean pod counts in Illinois and the western portion of Iowa.

Soybeans are trading at a price about three times greater than corn, higher than the traditional ratio that is a key pricing benchmark, traders said. Domestic and export demand for soybeans may fall short of U.S. Department of Agriculture (USDA) projections, and yields look to be growing.

"Soybean prices had been pushed higher because of Chinese demand for U.S. shipments, but the supply picture is very favorable," said Phin Ziebell, agribusiness economist at National Australia Bank.

The International Grains Council on Thursday raised its forecasts for world corn and wheat production in the 2016-17 season to record highs.

Export demand limited corn's losses. USDA reported weekly export sales of 71,100 tonnes of old-crop corn, below trade expectations, and 1,059,900 tonnes of new-crop corn, above expectations. Endit