Corn and soybeans fell in Chicago as showers and thunderstorms in Brazil are forecast to aid developing crops and farmers in Argentina are predicted to get drought relief next week.
Brazil soybeans may get 0.5-2.5 inches of rain in the next five days and corn is expected to receive 0.5- 2 inches, Commodity Weather Group wrote in a report today. Close to three-quarters of Argentina’s corn belt is expected to get 0.5 to 2 inches of rain next week, which will temporarily reduce stress on crops.
"Grain futures are lower as weather outlook remains positive for South American crops," Paul Georgy, the president of Allendale Inc., wrote in a market comment. "The weather pattern in Brazil should be favorable for most crops."
Corn for March delivery fell 0.5 percent to $4.2575 a bushel on the Chicago Board of Trade by 6:14 a.m., poised for a 1.7 percent weekly drop. Soybeans for March delivery fell 0.5 percent to $13.085 a bushel, set for a weekly gain of 2.3 percent, the most since the week ended Nov. 22.
Wheat for delivery the same month dropped 0.4 percent to $5.705 a bushel in Chicago, while milling wheat for March delivery traded on NYSE Liffe in Paris was unchanged at 192.50 euros ($261.76) a metric ton.
U.S. markets are closed on Jan. 20 for the celebration of Martin Luther King Day.
"Therefore expect some fireworks based on weather forecasts when markets open at 7 p.m. Monday," Georgy said.