corn and soybean futures fell Thursday as forecasts for wetter weather in South America bolstered expectations that the region will produce large crops next year. Wheat finished slightly lower.Private weather forecasts over the next week show increased rainfall and somewhat cooler temperatures in Argentina, which could ease stress on crops after a spate of hot, dry weather in the country, analysts said. Parts of southern Brazil--another key growing region--also are expected to benefit from wetter weather.
The latest weather outlooks are "renewing ideas that South America will post record crop production," said Terry Reilly, an analyst with brokerage Futures International in Chicago.
Big crops in South America could further expand global grain and soybean stockpiles after U.S. farmers this year produced what is expected to be a record corn crop and the nation's third-largest soybean crop.
Corn futures also were weighed down Thursday by a Reuters report that China had rejected shipments of U.S. dried distillers grains--a corn byproduct used in animal feed and also called DDGs--and that more rejections were likely. The report, which cited unnamed traders, said China had turned away 2,000 metric tons of DDGs as it steps up scrutiny of shipments from the U.S. over an unapproved genetically modified corn strain. Beijing has rejected more than 500,000 tons of U.S. corn shipments this year due to the presence of the insect-resistant MIR 162 strain.
The report is bearish because it increases concerns among traders that China will significantly reduce corn shipments from the U.S. "over the months to come," Mr. Reilly said.
Corn for March delivery at the Chicago Board of Trade slid 8 1/4 cents, or 1.9%, to close at $4.26 1/4 a bushel.
CBOT January soybeans shed 15 cents, or 1.1%, to $13.18 3/4 a bushel. Most-active March soybeans slipped 17 1/2 cents, or 1.3%, to $13.05 1/4 a bushel.
CBOT March wheat declined 1/4 cent, or 0.04%, to $6.06 a bushel, setting a fresh 19-month closing low.
