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Beans, Grains Close Mixed as Investors Weigh Brazil Output, U.S. Weather

Corn, wheat close week higher while soybeans decline.

Soybeans and grains closed the session mixed on Friday as investors weigh ever-increasing forecasts for production in South America vs. unfavorable growing weather for winter wheat in the U.S.

The U.S. Department of Agriculture last week raised its estimate for Brazilian soybean production to a record 108 million metric tons, up from a prior outlook for 104 million. Corn output in the country will total 91.5 million tons, up from a previous projection of 86.5 million tons, the USDA said. 

Global soybean output is pegged at 1.05 billion tons, up from the prior forecast of 1.04 billion, according to the government. 

The Buenos Aires Grain Exchange left its estimate for soybean production in Argentina unchanged at 54.8 million tons. The exchange said, however, that 70% of the crop has favorable moisture and the crop could beat estimates should conditions remain positive. 

Still, extremely dry weather has offered support for wheat futures. Little or no rain has fallen in parts of the southern Plains in the past 30 days, according to the National Weather Service, as hard-red winter varieties are set to emerge from winter dormancy. Continued overnight freezes in the eastern Midwest are threatening soft-red winter wheat. 

Soybean futures for May delivery fell 1¼¢ to $10.00¼ a bushel on the Chicago Board of Trade. Soy meal lost 90¢ to $328.40 a short ton, and soy oil rose 0.02¢ to 32.28¢ a pound.

Corn futures rose 1¾¢ to $3.67¾ a bushel in Chicago. 

Wheat futures for May delivery gained ½¢ to $4.36½ a bushel in Chicago, and Kansas City futures added 3¾¢ to $4.53¾ a bushel. 

 

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