Corn and soybean futures fell Friday as global currency swings and the advancing U.S. harvest halted a brief rally in the crop markets.
Soybean prices led the losses as a sharp drop in Brazil's currency led to a selloff in the oilseed market. A weaker real makes Brazilian crops more competitive on global market, generating stiffer competition for U.S. supplies. While recent demand for U.S. soybeans has been strong, analysts say big soybean shipments from Brazil could limit U.S. exports at a time when domestic farmers are harvesting what is expected to be a record crop.
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"If the Réal keeps going down, beans are going down," said Charlie Sernatinger, head of grain trading at ED&F Man Capital. "End of story."
Soybeans for November delivery fell 12 cents, or 1.2%, to $9.77 a bushel at the Chicago Board of Trade. Prices for the oilseeds had risen for three consecutive sessions prior to Friday's trade.
Weakness in the soybean market weighed on corn prices, as did pressure from the U.S. harvest, which progressed this week. Midwest farmers have been reporting better-than-expected corn yields, fueling expectations that the government next week will predict a bigger U.S. crop than previously anticipated.
CBOT December corn declined 2 1/4 cents, or 0.6%, to $3.48 1/4 a bushel. Prices for the grain had improved in the previous two sessions.
Wheat was mixed. December contracts slipped 1/4 cent, or 0.1%, to $4.25 3/4 a bushel, while March-dated contracts were flat.
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(END) Dow Jones Newswires
November 03, 2017 16:30 ET (20:30 GMT)