Chicago | Reuters – The Chicago Board of Trade (CBOT) soybean futures fell sharply in technical trading on Friday as investors rushed to liquidate their positions ahead of the weekend, traders said.
The most active soybean contract fell to lowest prices since July — and several new crop soybean contracts also plunged to new contract lows — as U.S. export demand was weak and a new forecast estimated Brazil’s soybean crop would be larger than expected.
And commodity and financial markets were in turmoil late in the day after House Republicans and President Joe Biden’s Democratic administration on Friday halted talks on raising the federal government’s $31.4 trillion debt ceiling as the default avoidance period approached (all figures in US dollars).
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“It’s a fragile market and the end of a weak technical trading week,” said Don Roose, president of US Commodities, based in Iowa. “The market is waiting to see if we can set a new floor.”
Corn and wheat futures spent the day in choppy trading as a flurry of bargain buying earlier in the trading session propelled prices higher in a technical recovery from the previous day’s sharp lows.
Poor crop prospects in the US flats initially gave wheat futures a boost: Kansas wheat yield potential was estimated Thursday at its lowest level since at least 2000 during an annual field tour.
But corn and wheat futures also ended the day lower, with hard red winter wheat at some point in July hitting its lowest price since May 5.
“We’ve seen some of the weak short positions flush out of the market, but nobody is stepping in to buy on the rallies,” said Karl Setzer, brokerage research lead at Mid-Co Commodities.
The CBOT’s most active soybeans were down 26 cents at $13.07-1/4 a bushel. Most active corn settled 3/4 cents at $5.54-1/2 a bushel while CBOT wheat settled 6-3/4 cents at $6.05 a bushel.
– Reporting for Reuters by PJ Huffstutter in Chicago; additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.
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