Corn set for biggest weekly drop in 2-1/2 months on U.S. harvest pressure

Chicago corn slid on Friday and was set for its biggest weekly decline since early August, while soybeans were on track for their worst week in a month, with both markets under pressure from rapidly advancing U.S. harvest.

Wheat was set for its first weekly decline in four on improved production prospects in Australia and Argentina.

* The most-active corn contract on the Chicago Board of Trade (CBOT) fell 0.2% to $4.78-1/2 a bushel, as of 0032 GMT, and soybeans added 0.1% to $12.80-1/2. Wheat fell 0.4% to $5.77-1/4 a bushel.

* For the week, corn has lost 3.4%, the biggest weekly drop since the week ended Aug. 4. Soybeans are down 1.7%, the most since late September, while wheat is down 1.5% after gaining for the last three weeks.

* The active pace of U.S. harvest of corn and beans weighed on prices.

* U.S. farmers had harvested three-quarters of their soybean crop and 59% of their corn by Sunday, according to weekly data from the U.S. Department of Agriculture.

* The figures, roughly in line with trade expectations, were ahead of the five-year average pace for each crop.

* Traders are monitoring forecasts for beneficial rain in Brazil and Argentina, after drought slowed plantings there.

* The U.S. Department of Agriculture reported exporters sold 110,000 metric tons of U.S. soybeans to China.

* In the wheat market, improved weather in Southern Hemisphere added pressure.

* Recent rains across key Australian wheat growing areas are likely to increase yields, adding several million tons to a crop that had been hit by dry weather and boosting the global supply outlook, analysts said.

* Significant rainfall last weekend over Argentina’s core farmland has improved the prospects for the current corn crop, while also stanching the bleeding for planted wheat after an intense dry spell, the Buenos Aires Grains Exchange (BdeC) said on Thursday.

* In news, the European Commission on Thursday lowered its forecast of European Union exports of common wheat, or soft wheat, in 2023/24 to 31 million metric tons from 32 million projected a month ago.

* EU soft wheat exports so far in 2023/24 are running 22% below the year-ago level, reflecting stiff early-season competition from Russia.

* Ukrainian Deputy Prime Minister Oleksandr Kubrakov denied on Thursday reports by Ukrainian and British firms that the new Black Sea export corridor had been suspended.

* The Kyiv-based Barva Invest consultancy, British security firm Ambrey and a specialised outlet, Ukrainian Ports, reported that Ukraine had suspended use of the corridor due to a possible threat from Russian warplanes and sea mines.

* Commodity funds were net sellers of CBOT soybean, soymeal, soyoil and corn futures contracts on Thursday and net buyers of wheat futures, traders said.

Tags: China, corn, EU, soybeans, wheat, yields, U.S., Argentina, rains, Australia, soft wheat, Ukraine