Soybean futures stabilized on Friday following steep losses a day earlier, while both corn and wheat closed weaker.
The previous day’s losses in soybeans – and limit declines in soybean oil – were at least partially sparked by concerns over US biofuel policy. However, the market traded to both sides of unchanged today in what was described as consolidation trade. The US Environmental Protection Agency said on Thursday it had sent its proposal on future biofuel blending mandates to the White House for review. But there’s still no official word on what it contained, despite fears it includes a lower mandate. July beans ended 1 ¼ cents lower at $10.50, but new-crop November managed a ¼-cent gain to $10.35 ½.
Wheat was pressured by rising production ideas, especially after a crop tour this week estimated this year’s average winter wheat yield in the No. 1 production state of Kansas at 53 bu/acre, the highest in four years. July Chicago lost 7 ¾ cents to $5.25, July Kansas City dropped 11 ¾ cents to $5.16 ½, and July Minneapolis was 6 ¾ cents lower at $5.73 ¼.
Corn continued to be pressured by good planting and growing conditions in the American Midwest. July lost a nickel to $4.43 ½, and December closed down 3 ¼ cents at $4.35 ½.
