Improvement in Soil Moisture Drives Wheat Futures Lower

Grain and feed prices were mixed following the long holiday weekend. Concerns about South American growing conditions and robust demand from Chinese buyers supported corn futures. However, profit-taking triggered by progress in resolving the Argentine port strike left soybean and soybean meal prices mixed, with nearby contracts down. At the same time, the liquidation of bull spreads supported the back end of both curves. Light short oil share spreading by funds limited the decline in nearby soybean meal futures. Wheat prices were broadly lower as precipitation across the U.S. Plains improved soil moisture levels.

Nearby soybean futures fell about 1/2 percent (March contract -7 1/4 cents per bushel), but the benchmark contract managed to hold the psychologically important $12.50 level. Prices fell by more than 16…