Chicago wheat stumbles on improved harvest prospects
CHICAGO: Chicago wheat futures moved lower on Friday as traders weighed improved yield prospects in the US Plains, though brisk export demand limited losses, traders said.
Soybean prices steadied after tumbling on Thursday, while corn sank on ideal planting and growing conditions in the US Midwest. CBOT soybeans were down 1 cent to $10.50-1/4 per bushel as of 11:20 a.m. CT (1620 GMT).
Soybeans had reached their highest price since late July on Wednesday, buoyed by this week's de-escalation in the US-China tariff stand-off, before dropping 2.5% on Thursday. CBOT corn fell 2-1/4 cents to $4.46-1/4 a bushel, and CBOT wheat edged down 8-3/4 cents to $5.24 a bushel.
Soyoil futures consolidated on Friday after plunging to their daily limit in the previous session as uncertainty over a US biodiesel mandate hung over the market.
The biofuel sector is still awaiting clarification after the US Environmental Protection Agency (EPA) said on Thursday it had sent its proposal on future biofuel blending mandates to the White House for review. Meanwhile, beneficial planting and growing conditions for the corn and soy crop in the US Midwest have also put more pressure on futures.
Favourable US wheat harvest prospects have outweighed bullishness from increased export demand and threats to China's wheat crop, traders said. 'When you look at improved growing conditions, it's hard to justify a major rally in wheat,' Jack Scoville, vice president of Price Futures Group, said.
A crop tour in Kansas, the top US wheat-growing state, projected the highest yield in four years as the region's crop was boosted by timely rain.
US export sales of wheat for the week ended May 8 totalled 804,800 metric tons, beating analyst expectations, according to the US Department of Agriculture. China issued a warning on Friday of a high risk of dry, hot winds next week that could damage winter wheat crops in major producing areas, including Henan.
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