Soybeans lead grains lower
U.S. soybean futures fell on Wednesday, pressured by a wetter weather forecast for Argentina and technical selling.
Chicago Board of Trade March soybeans fell 14 3/4 cents, or 1%, to $14.37 a bushel.
Weather forecasts showed a greater chance of rain in Argentina next week, damping some of the concern that had built up in recent days about hot and dry weather potentially damaging the country's soybean crops.
The expected rain isn't enough to end concerns about recent dryness, but some market participants seized on the forecasts and sold futures.
"I wouldn't say that it's a lot wetter, but for a lot of the [speculative] fund managers... they're going to use that as a sell indicator," said Arlan Suderman, senior market analyst with Water Street Solutions in Wichita, Kan.
Much of central Argentina, the heart of the country's soybean belt, has seen lower-than-average rain levels in the last month. But in the two months before that, rain was generally ample, keeping the region's soil moist enough to withstand the recent dryness.
Soybeans also fell on negative technical signals. Losses accelerated after March futures moved below their 200-day moving average of $14.47 1/4 a bushel.
"It's like the floodgates opened and just real fast the liquidation occurred," Mr. Suderman said.
Corn and wheat followed soybeans lower. The two grains were also pressured by continued concerns about weak export demand
Wheat was also pressured by a wetter weather forecast for crops in the U.S. southern Plains, where prolonged drought conditions threaten now-dormant winter wheat crops.
March corn settled down 7 3/4 cents, or 1.1%, at $7.20 3/4 a bushel.
CBOT March wheat settled down 4 1/2 cents, or 0.6%, at $7.74 3/4 a bushel. KCBT March wheat fell 1/2 cent, or 0.1%, to $8.30 1/4 a bushel. MGEX March wheat fell 3 3/4 cents, or 0.4%, to $8.60 1/2 a bushel.
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(END) Dow Jones Newswires
January 23, 2013 15:45 ET (20:45 GMT)
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