Chicago agricultural commodities close lower

Chicago Board of Trade (CBOT) grains futures settle lower on Friday on signs of weakening demand for U.S. exports as the South American harvest nears.

The most active corn contract for March delivery fell 3.25 cents, or 0.9 percent, to 3.58 dollars per bushel. March wheat delivery fell 3 cents, or 0.7 percent, to 4.2325 dollars per bushel. January soybeans dropped 17.75 cents, or 1.75 percent, to 9.9475 dollars per bushel.

The U.S. Agriculture Department said early Friday that weekly soybean export sales fell to a lower-than-expected 87,700 tonnes in the latest week from 979,200 tonnes a week ago. Corn export sales of 429,300 tonnes also dropped below the low end of trade forecasts.

The market also was pricing in the possibility that a slowdown in the movement of soybeans to U.S. West Coast ports, due to wintry conditions.

Record snow and rain pummelled the western United States on Thursday, raising the threat of floods and freezing temperatures in some areas.

Wheat futures have been supported this week by traders adjusting their bets on the grain before a rebalancing of investment portfolios by index funds next week.

In the outside markets, the Brent crude oil market is 0.08 dollar per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 78 points higher at 19,977 points.

Jack Scoville, The PRICE Futures Group's Senior Market Analyst, says that the markets are lower on a small rebound in the US Dollar combined with some very weak export sales today.

"The market is pretty complacent about huge crops down there and might be a bit too complacent, but given the weekly sales today that does not matter. I think the sales are just a blip, sales will improve again and soon, but the world raced to book before the holidays and in response to U.S. election. So, it might take a couple of weeks," Scoville says. Endit