Chicago soybean futures ticked down on light post-holiday trading volume on Friday, as competitively priced Brazilian beans and favorable South American weather pressured the commodity, analysts said.
Wheat and corn futures also edged down, but corn received some support from the brisk pace of U.S. exports.
The most-active soybean contract on the Chicago Board of Trade finished 1-3/4 cents lower at $10.45-3/4 a bushel, having hit its lowest point since October 23.
Wheat settled 1/2 cent lower at $5.06-1/2 per bushel, while corn ended 2-3/4 cents lower at $4.37-1/2 per bushel.
Trading volume was down on Friday as many traders took an extra day off after the New Year holiday on Thursday, said Jim McCormick, co-founder of AgMarket.net, but fund liquidation caused some pressure.
Meanwhile, McCormick said China was buying Brazilian beans.
"We are not competitively priced with Brazil, so the market is weakening on trying to get price-competitive with the Brazilians," he said.
He added that the weather in South America "probably couldn't get much better for Brazil" while Argentina's slightly drier conditions are expected to be relieved by rain in the near future.
Brisk U.S. export sales kept a floor under corn futures, said McCormick, as did the pace of the ethanol grind.
Earlier in the week, the USDA reported net export sales of U.S. 2025-26 corn in the week ended December 18 at 2.2 million metric tons, topping a range of trade expectations for 1 million to 2 million tons.
Regarding next month's U.S. Department of Agriculture supply and demand report, "I think the trade is leaning toward that corn crop getting a little bit smaller," said McCormick, which would provide additional support.
Wheat was pressured by large global supplies this week, as traders watched developments in the negotiations to end the war in Ukraine.
Any resolution to the nearly four-year-old conflict would likely weigh on wheat prices, as reduced shipping risks could lower export costs and improve access to Ukrainian ports.
(Reuters)
