By Jesse Newman
CHICAGO--Soybean futures fell for a second consecutive session and grain prices closed mostly lower as benefits from surging crude oil prices waned.
Soaring prices for crude oil -- which shot more than 8% higher on Wednesday -- helped agricultural markets stage a comeback in early deals after prices for the crops dropped sharply a day earlier. Positive sentiment in commodity markets following oil's surge tapered off, however, due to demand concerns and ample crop stockpiles.
Prices for soybeans dropped 1% amid expectations that demand for U.S. supplies will soon slow as freshly harvested crops become available in countries like Brazil and Argentina. A rapid U.S. export pace this year helped push soybean prices to a more than four-month high earlier in the week, and the U.S. Department of Agriculture said Wednesday that private exporters had booked sales of 123,000 metric tons of the oilseeds for delivery to China. Still, analysts said the soybean rally stalled as traders' focus shifts to South American crops.
"It's all about South America now, the U.S. is yesterday's news," said Charlie Sernatinger, head of grains trading at ED&F Man Capital Markets.
Soybean futures for January fell 10 1/4 cents to $10.32 1/4 a bushel at the Chicago Board of Trade.
Corn prices were mixed, with stronger energy markets stemming losses in nearby futures contracts, while end-of-the-month selling pressured longer-dated ones. Prices for corn have fallen 6% this year owing to huge domestic and world grain inventories.
CBOT December corn futures were flat at $3.36 3/4 a bushel while later-dated contracts nudged lower.
Massive wheatstockpiles also weighed on prices for that grain, with wheat prices declining for the sixth straight session to a more than two-month low. A stronger U.S. dollar, which makes domestic crops less competitive on global markets, added to wheat's struggles on Wednesday.
CBOT December wheat fell 3 1/2 cents, or 0.9%, to $3.80 1/2 a bushel, the lowest settlement price since Sept. 14.
Write to Jesse Newman at firstname.lastname@example.org
(END) Dow Jones Newswires
November 30, 2016 15:59 ET (20:59 GMT)
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