CHICAGO, Jan. 15 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures closed mixed on Friday, with corn and soybean dropping and wheat rising.
The most active corn contract for March delivery fell 2.75 cents, or 0.51 percent, to settle at 5.315 dollars per bushel. March wheat rose 5.5 cents, or 0.82 percent, to settle at 6.755 dollars per bushel. March soybean lost 13.75 cents, or 0.96 percent, to close at 14.1675 dollars per bushel.
Corn and soybeans fell on profit taking ahead of the 3-day U.S. holiday weekend; wheat rose on possible Russia's export tax, Chicago-based research company AgResource noted.
For the week, CBOT soybeans are up around 45 cents, corn is up 35 cents, and wheat is up 27 cents. All have set new 6-7 year highs. AgResource holds that CBOT markets had become overbought and needed a correction. Nevertheless, there is no evidence that a seasonal high has been set. Any break should be modest and short lived.
Russia is expected to sign a 1.65-dollar per bushel export duty that would start on March 1 and go through June. U.S. Department of Agriculture (USDA) estimates that Russia was going to export 39 million metric tons of wheat. Most commercials now estimate that total at 31-33 million metric tons with that demand likely to be pushed to North America.
The National Oilseed Processors Association (NOPA) member soybean crush in December totaled 183.2 million bushels, another record for the month. Sept.-Dec. NOPA crush sits at 711 million bushels, up 7 percent from 2019.
Weather forecast shows it is drier in Central/Southern Argentina. Meaningful precipitation in Argentina over the next few days will be north of major crop producing areas before complete dryness will return for an extended 7-8 days with warming temperatures.
With Russia's export duty, AgResource holds it is unlikely for March wheat futures fall too far below 6.35 dollars as world importers reach for U.S. wheat. Meanwhile, it maintains that the bull demand trend for corn and soybean are unchanged and higher prices are needed looking forward to February.