Corn, Soybeans Close Mixed as Fed Reserve Leaves Rate Unchanged
Corn and soybeans closed mixed while wheat was lower after the U.S. Federal Reserve left interest rates unchanged today.
The FOMC left rates unchanged, as expected, citing slowing global growth specifically in China. Federal Reserve Chairman Janet Yellen in remarks after the report was released said recent moves by the Bank of Japan to lower it's rate into negative territory and the European Central Bank to further drop its rate below zero were factors in the decision.
The committee in December raised rates for the first time in almost a decade, and indicated it would increase its federal funds rate four times in 2016.
Prices rebounded after earlier falling amid improving weather in South America, which will boost prospects in Brazil and Argentina. Drier weather the next six to 10 days in parts of central and southern Brazil will allow farmers to speed the harvest of soybeans, according to MDA Information Services Senior Agricultural Meteorologist Donald Keeney.
Brazil is forecast to produce a record 100 million metric tons of soybeans and 84 million tons of corn this year, according to the U.S. Department of Agriculture. Argentina soybean output is pegged at 58.5 million tons and corn growers will collect 27 million tons, USDA data show.
Corn futures for March delivery fell 3/4 cent to $3.67 3/4 a bushel on the Chicago Board of Trade.
Soybean futures for May delivery rose 2 cents to $8.94 a bushel. Soymeal futures fell 30 cents to $267.90 per short ton, and soyoil rose 0.16 cent to 32.65 cents a pound.
Wheat futures for May delivery dropped 6 1/4 cents to $4.71 a bushel in Chicago. Kansas City wheat was down 5 1/4 cents to $4.83 3/4 a bushel.
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