Chicago agricultural commodities close lower
Xinhua, December 24, 2016 Adjust font size:
Chicago Board of Trade (CBOT) grains futures settle slightly lower on Friday, extending losses in agricultural markets following quiet trade ahead of the Christmas holiday.
The most active corn contract for March delivery fell 1.5 cents, or 0.43 percent, to 3.4575 dollars per bushel. March wheat delivery fell 3.5 cents, or 0.88 percent, to 3.935 dollars per bushel. January soybeans dropped 6.5 cents, or 0.65 percent, to 9.975 dollars per bushel.
Soybean prices declined to a more than five-week low, buffeted by forecasts for more crop-friendly rains in Argentina, which have helped alleviate fears that dry weather would dent production in that country.
Weather forecasts call for rains in northern Argentina and across most of Brazil, boosting South American growing conditions and spurring speculation that farmers there will see strong soybean harvests, which could increase competition for U.S. exports.
Prices for the oilseeds sank nearly 5 percent for the week, prompting traders to weigh whether the market is in for a prolonged slide that erases an earlier autumn rally. Although demand for U.S. soybean supplies has been robust so far this season, foreign purchases are expected to drop off in the new year as freshly-harvested South American rations come online, potentially depressing the market further.
Corn prices drifted to a three-week low after trading in a narrow range on Friday. Losses in that market totaled nearly 3 percent for the week, as prices were weighed down by massive domestic and world supplies and a strong U.S. dollar, which is unfriendly for U.S. farm exports.
The dollar notched a fresh 13-year high against a basket of international currencies earlier in the week.
Wheat futures eased amid light trading volume, with prices for that grain dragged lower by lackluster demand and strong world harvests. Farmers in Australia are harvesting a record wheat crop, which will add to global grain supplies that already are the biggest the world has ever seen. Meanwhile, a firm greenback is making U.S. wheat less competitive on the world market. Endit