Corn, wheat and soybean futures all eased on Friday after worries about hot weather in the American Midwest pushed prices higher a day earlier.
The stronger U.S. dollar and position-squaring ahead of next Tuesday’s closely watched USDA acreage and grain stocks reports added pressure across the markets.
Corn futures slipped as traders took profits following Thursday’s weather-driven advance. Forecasts for expanding heat across the central U.S. kept crop concerns in focus, although much of the corn crop has not yet reached the critical pollination stage. Sharp declines in crude oil also weighed on corn because of its role as a feedstock for ethanol. Crude settled at a fresh four-month low as increased tanker traffic out of the Persian Gulf eased concerns about global supplies. September corn slipped 2 ½ cents to $4.21 ¾, and December lost 1 ½ cents to $4.41 ½.
Wheat futures moved lower as the advancing U.S. winter wheat harvest increased seasonal pressure and brought additional supplies onto the market. A stronger dollar added to the negative tone by making U.S. wheat more expensive for overseas buyers. The retreat came despite continued concern about heat affecting crops in parts of Europe. September Chicago fell 11 ¾ cents to $5.89 ¾, and September Kansas City was down 11 cents at $6.19 ½. September Hard Red Spring dropped 13 ¾ cents to $5.82 ¾, and September Minneapolis lost 9 ¾ cents to $6.05 ¼.
Soybean futures declined under pressure from weaker crude oil and continued uncertainty about China demand. August beans slipped a ½ cent to $11.36 ½, and November dipped ¾ of a cent to $11.56 ¼.
