Chicago Close: Soybeans, Wheat Down to Start Week

Corn managed gains but soybean and wheat futures both closed lower to start the week.

Soybeans sagged on good weather for the South American soybean crop, where production prospects remain generally favourable despite some dryness in localized areas. Last week’s USDA supply-demand update held the 2019-20 soy production estimates for Brazil and Argentina steady from December at 123 million and 53 million tonnes, respectively. Position squaring ahead of this week’s highly anticipated signing of the U.S.-China phase one trade deal also pressured the market, according to reports. March beans fell 3 ¾ cents to $9.42 ¼ and new-crop November dropped a nickel to $9.69 ¾.

Wheat dropped on profit taking on the heels of the benchmark March Chicago contract last week hitting its highest in six months. March Chicago wheat eased 2 ¼ cents to $5.62 ¼, March Kansas City lost 2 cents to $4.92 ¾ and March Minneapolis closed down 3 cents at $5.55 ¼.

Corn was supported by short covering and a USDA announcement this morning of a private export sale of 137,000 tonnes of optional origin corn to South Korea for 2019-20 delivery. March corn was 3 ¾ cents higher at $3.89 ½ and December gained 2 cents to $4.04 ¾.

Live cattle and lean hog futures both ended lower today.

Source: DePutter Publishing Ltd.

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