On Friday, Chicago corn and soybean futures experienced a rise, yet they remain near four-year lows and are headed for weekly losses. The most-active soybean contract on the Chicago Board of Trade (CBOT) rose by 1.3% to $10.30 a bushel, but has lost 1.7% for the week, hitting a low of $10.13 on Thursday, the lowest price since 2020. Similarly, CBOT corn rose 0.5% to $4.00-1/2 a bushel but is down 2.3% from the previous week, having fallen to $3.95, also a low since 2020.
Analysts noted that U.S. crop conditions are excellent, making it difficult to justify higher prices. The positive outlook for U.S. corn and soybeans is bolstered by good harvests in South America, which are keeping markets well-supplied. U.S. farmers have begun selling stored corn and soybeans from the 2023 harvest as they anticipate lower prices and prepare for the upcoming crop.
Bearish trends in the corn and wheat markets have been largely driven by favorable crop data from the U.S., and this sentiment is expected to persist through the remainder of 2024. Speculators have taken large net short positions in CBOT soybeans, corn, and wheat, with funds being net sellers of corn and soybeans while net buyers of wheat.
CBOT wheat was down 0.4% at $5.30 a bushel but is set to post a weekly gain of about 1.2%, as traders consider the production impacts of adverse weather in Europe and China.