On Friday, Chicago wheat futures took a nosedive for a third session, with prices under pressure from great supply and a tough race in the export market.

After ending lower for the last two sessions, soybeans were mostly flat, lowered as the exporters from U.S. brawl to sell beans and by anticipations of improved weather in Argentina, which has been affected by wide drought.

Worries about adverse weather affecting the U.S. winter crop, which lifted prices to multi-month peak earlier this week, could potentially limit the problem in prices.

However, analysts said that it is too soon to get anxious about the crop condition until the snow melts in March or April.

Phin Ziebel, agribusiness economist at National Australia Bank, said, “We won’t know about the yield prospects until the last of the snow melts.”

“Globally, there is no worry about supplies as of now,” he said.


The Chicago Board of Trade, CBOT, most-active wheat contract climbed 2 percent, its third week of gains, for the week.

Soybeans are largely unchanged for the week, while corn, which is on track for a third straight weekly rise, added 1.5 percent. The soybean market is experiencing pressure from weak demand for U.S. cargoes.

According to government data issued on Thursday, the sales for U.S. soybean export dropped to a seven-month low last week, as a tough race from rival exporter Brazil and worries over lower U.S. crop quality affected demand from the key buyer, such as China.

The weak weekly sales report has lifted concerns that foreign shipments could contract further than expected. Last week, the U.S. soybean’s net sales totaled only409,700 tonnes, which is well below trade forecast.

 INTL FCStone, a broker and consultancy firm, on Thursday, increased its Brazilian soybean harvest outlook to 111.08 million tonnes, up 1 million from its January forecast and above the USDA’s latest expectation of 110 million tonnes.

The net export sales of corn of almost 1.9million tonnes last week beat trade estimates.

According to the traders, commodity funds were net buyers of CBOT corn and wheat futures on Thursday and net sellers of soybeans, soybean meal, and soybean oil.

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