Profit-Taking Weighs on Grain and Oilseed Futures

Profit-taking weighed on grain and oilseed markets on Friday. Traders took profits but did not drive prices substantially lower, which given the size of the move higher on Thursday, indicates the recent trend may remain intact. Of course, the short-term direction of the market will depend on traders’ and analysts’ assessment of the damage done to the crops in Iowa and Illinois and the outlook for growing conditions in the second half of August and early September.

Soybean futures were narrowly mixed with most contracts rising or declining by less than 1/4 percent (November contract -3/4 cents per bushel). However, the declines were slightly larger for contracts with deliveries after March 2021, with most trading about 1/4 percent lower. The move lower on Friday occurred on a volume total that was well below the level on…