GRAINS-Corn and wheat lower as crude rally pauses
BEIJING/PARIS, March 20 (Reuters) - Chicago corn and wheat futures retreated on Friday while soybeans were little changed, as the crude oil rally lost impetus and the dollar regained ground.
A drop in weekly U.S. export sales and forecasts of rain in dry U.S. wheat belts next week also curbed grain prices.
Grain and oilseed prices have broadly tracked fluctuations in crude oil during the U.S.-Israel war against Iran, reflecting the widespread use of corn and soyoil in biofuel and investor interest in the crops as an inflation hedge.
Brent crude LCOc1 ticked lower on Friday, as plans by the U.S. and its allies to boost oil supply and restore shipping through the Strait of Hormuz tempered investor jitters over attacks on Gulf energy facilities this week. O/R
The most-active corn contract on the Chicago Board of Trade (CBOT) Cv1 fell 0.69% to $4.66-1/2 a bushel by 1158 GMT, breaking a three-day rally.
CBOT wheat Wv1 lost 1.56% to $5.98-1/2 a bushel, after rising in the two previous sessions. CBOT soybeans Sv1 inched up 0.04% to $11.69 a bushel, holding on to gains from the past three sessions.
"Oil prices are easing after the U.S. signalled it may realise 140 million barrels of sanctioned Iranian crude to cool the price spike," CM Navigator analyst Donatas Jankauskas said.
"U.S. weekly export sales... dropped sharply week-on-week, as surging U.S. futures have started to bite," he added, referring to data published on Thursday by the U.S. Department of Agriculture.
The dollar index =USD steadied on Friday after falling sharply the previous day. FRX/
Consultancy Sovecon said on Thursday it had raised its forecast for the 2026 wheat crop in top exporter Russia due to generally favourable weather, though the revised outlook was still below last year's level.
Grain markets are also wrestling with the possible impact of rising fuel and fertiliser prices on farmers' planting decisions, ahead of widely followed U.S. spring planting estimates at the end of March.
Traders are awaiting a revision to U.S. biofuel policy expected by the end of the month.
The soybean complex has been further buffeted this week by a surge in soymeal futures SMv1. Soymeal ticked lower on Friday after climbing nearly 7% over the previous two sessions.
Prices at 1158 GMT |
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| Last | Change | Pct Move |
CBOT wheat Wv1 | 598.50 | -9.50 | -1.56 |
CBOT corn Cv1 | 466.50 | -3.25 | -0.69 |
CBOT soy Sv1 | 1169.00 | 0.50 | 0.04 |
Paris wheat BL2c2 | 213.75 | -1.75 | -0.81 |
Paris maize EMAc1 | 208.25 | -1.75 | -0.83 |
Paris rapeseed COMc1 | 499.75 | -1.00 | -0.20 |
WTI crude oil CLc1 | 95.15 | -0.99 | -1.03 |
Euro/dollar EUR= | 1.16 | 0.00 | -0.16 |
Most active contracts - Wheat, corn and soy U.S. cents/bushel, Paris futures in euros per metric ton | |||
