Corn, soybeans close lower Thursday
U.S. corn and soybean futures fell Thursday as forecasts for wetter weather in South America bolstered expectations that the region will produce large crops next year. Wheat finished slightly lower.
Private weather forecasts over the next week show increased rainfall in Argentina, which could ease stress on crops after a spate of hot, dry weather in the country, analysts said. Parts of southern Brazil--another key growing region--also are expected to benefit from wetter weather.
Traders are closely watching forecasts in South America because big crops on the continent could further expand global grain and soybean stockpiles. U.S. farmers this year produced what is expected to be a record corn crop and the nation's third-largest soybean crop.
Corn futures also were weighed down Thursday by a Reuters report that China had rejected shipments of U.S. dried distillers grains, a corn byproduct used in animal feed and also called DDGs, and that more rejections were likely. The report, which cited unnamed traders, said China had turned away 2,000 metric tons of DDGs as it steps up scrutiny of shipments from the U.S. over an unapproved genetically modified corn strain. Beijing has rejected more than 500,000 tons of U.S. corn shipments this year due to the presence of the insect-resistant MIR 162 strain.
Corn for March delivery at the Chicago Board of Trade slid 8 1/4 cents, or 1.9%, to close at $4.26 1/4 a bushel.
CBOT January soybeans shed 15 cents, or 1.1%, to $13.18 3/4 a bushel. Most-active March soybeans slipped 17 1/2 cents, or 1.3%, to $13.05 1/4 a bushel.
CBOT March wheat declined 1/4 cent, or 0.04%, to $6.06 a bushel, setting a fresh 19-month closing low.
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(END) Dow Jones Newswires
December 26, 2013 14:53 ET (19:53 GMT)