Chicago Board of Trade (CBOT) wheat, corn and soybean futures closed all lower for a third straight session on Wednesday, as the market focused on improving weather and slumping crop prices in South America.
The most active wheat contract for March delivery dropped 2.25 cents, or 0.48 percent, to close at 4.695 dollars per bushel. Corn for March delivery lost 0.75 cents, or 0.2 percent, to close at 3. 655 U.S. dollars per bushel. Meanwhile, March soybeans delivery shed 4.75 cents, or 0.54 percent, to close at 8.8075 dollars per bushel.
Low volume was the feature of the day as many traders were closing their trading ahead of the Christmas holiday and the New Year. Chicago wheat extended their losses for a third session in a row amid the news that Egypt, the world's largest wheat importer, bought about 120,000 metric tons of Argentine wheat at slumping prices in an international tender.
Analysts noted the aggressive nature of Argentine wheat offers surprised traders with many worrying if more aggressive corn and soybean offers are to follow in 2016. Soybean futures were put under more pressure by improving South American weather with more-than-expected showers falling overnight across the drier areas of the north of Brazil, easing concerns about insufficient rains curbing Brazil's soybean production.
This week's moisture has stabilized the soybean crop in this area, but it will be critical that rains drop as expected during January to restore yield prospects, according to analysts. The Global Forecast System (GFS) forecasted soaking rains in northern Brazil are coming in the 10-to 15-day period.
The weekly ethanol production report released by the U.S. Energy Information Administration on Wednesday showed a drop in production and a small rise in inventories, seen as a little bearish to corn future. U.S. ethanol production through the week ending Dec. 18 was down nearly 3 percent from the prior week, to 973,000 barrels per day, while U.S. ethanol stocks rose slightly.
U.S. ethanol stocks rose by 16 percent from a year ago due to negative U.S. blending and production margins, said AgResource company, a Chicago-based agricultural research institute.
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