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Soybean, Corn Decline Amid Profit Taking, Brazil Estimates
Soybean and grain futures declined Thursday amid profit-taking and increased projections for crops in Brazil.
Soybeans rose 16¢ yesterday, corn added more than 8¢, and wheat gained 13¢. Investors who had bet on higher prices likely are selling contracts and booking profits, giving back some of Wednesday's gains.
The Renewable Fuels Assocation and billionaire Carl Icahn on Tuesday reportedly presented a proposal to the White House that would potentially increase sales of ethanol while shifting the responsibility of blending away from refiners. The validity of that deal, however, is in question.
Icahn is the majority owner in a refining company, and the White House has said there is no executive order pertaining to the ethanol mandate in the works. The chief executive of Poet, the second-biggest ethanol producer in the U.S., said the RFA doesn’t have negotiating power for the entire industry.
Prices also declined after researcher Informa Economics raised its outlook for Brazil’s soybean crop to 108 million metric tons from 106.5 million and its corn production outlook to 91 million tons from 89 million.
Soybean futures for May delivery fell 14½¢ to $10.37¼ on the Chicago Board of Trade. Soy meal dropped $4.80 to $334.50 a short ton, and soy oil declined 0.59¢ to 34.15¢ a pound.
Corn futures for May delivery fell 3½¢ to $3.78½ a bushel in Chicago.
Wheat futures declined 4¾¢ to $4.52¼ a bushel on the CBOT. Kansas City futures lost 8¼¢ to $4.69 a bushel.