Corn, wheat and soybean futures all closed lower Wednesday as harvest pressure, profit taking and a stronger U.S. dollar weighed on markets.
The losses in corn were largely tied to profit taking and liquidation of long positions. U.S. harvest activity is also increasing, with 13% of the national corn crop harvested as of Sunday, ahead of the five-year average of 11%. On the other side, the USDA reported a fresh sale of 100,000 tonnes of U.S. corn to Mexico, but that was not enough to offset broader selling pressure. December corn fell 7 ¾ cents to $5.29, while March was down 7 ½ cents at $5.43 ½.
Soybeans followed corn lower. Harvest pressure remained an important factor, with 12% of the U.S. soybean crop already in the bin, versus the five-year average of 8%. Traders also took profits ahead of high-level U.S.-China talks, with President Xi Jinping arriving in Washington Wednesday and agricultural trade expected to be among the topics discussed. November beans lost 7 ½ cents to $13.18, and March was 6 ¼ cents lower at $13.42 ½.
Wheat posted the largest losses of the three commodities. Technical selling and long liquidation pressured the winter wheat markets, while a U.S. dollar index at nearly a two-month high made U.S. grain less competitive for overseas buyers. December Chicago dropped 8 ¾ cents to $7.08 ½, and December Kansas City fell 9 ½ cents to $7.71 ¾. December Hard Red Spring tumbled 15 cents to $7.51 ¾, and December Minneapolis ended 7 ½ cents lower at $7.28 ¾.
