By Ilan Brat
CHICAGO--U.S. soybean futures fell Friday on concerns that the
oilseeds have lost some international competitiveness after China
canceled an import order.
Corn finished lower and wheat was mixed.
Soybeans came under selling pressure throughout the session
following a U.S. Department of Agriculture report indicating that
China had cancelled an order for 200,000 metric tons. Ample
production in South America is competing with U.S. output, weighing
on prices and raising concerns about the international
competitiveness of U.S. oilseed supplies. Brazil's currency, the
real, weakened versus the dollar on Friday, supporting the global
attractiveness of Brazilian soybeans.
The weakened Brazilian real "gives the exports out of Brazil a
competitive advantage," said Michael McDougall, director of
agricultural commodities for Societe Generale.
Chicago Board of Trade soybean futures for August delivery fell
9 1/2 cents, or 1%, to $9.80 3/4 a bushel.
Corn oscillated between gains and losses during the session and
ultimately closed lower. Analysts said a USDA report of an export
order to Mexico helped bolster prices but uncertainty about whether
an extremely rainy June and early July and a subsequent spell of
benign weather would make output more or less than expected added
some pressure.
CBOT corn futures for September delivery ended 2 1/4 cents, or
0.6%, lower at $3.71 a bushel.
Wheat settled mixed. A decline in the dollar supported
prices.
A weaker greenback helps make U.S. supplies more affordable for
foreign buyers. The overall strength of the dollar in the last year
has battered grains and soybeans in general and dragged
particularly on wheat, one of the most global of grains. It has
helped make European and Russian wheat more attractive to big
buyers such as Egypt and relegated U.S. supplies to a position
farther down buyers' preferences list.
At the same time, some private estimates during the week for
strong wheat yields weighed on prices.
CBOT wheat futures for September delivery were up 2 3/4 cents,
or 0.6%, to $4.99 1/4 a bushel. CBOT March 2016 wheat was 3/4 cent,
or 0.2%, lower at $5.10 1/2 a bushel.
Write to Ilan Brat at ilan.brat@wsj.com
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