November 11, 2016 / 8:17 PM / 2 years ago

GRAINS-U.S. corn, soy, wheat closer lower; end week in negative territory

(Updates with closing prices, adds new analyst quote)
    By Mark Weinraub
    CHICAGO, Nov 11 (Reuters) - U.S. soybean futures fell 1
percent on Friday, weighed down by concerns about weakness in
Chinese markets limiting export demand from the world's top
buyer of the oilseed, traders said.
    Chicago Board of Trade corn and wheat futures also were
lower. Weakness in corn stemmed from growing inventories amid a
record U.S. harvest while weak export demand for U.S. wheat
weighed on that grain.
    A strong dollar, coupled with weakness in the Brazilian
currency, added pressure to soybeans as the currency
fluctuations were seen benefiting exports from the South
American producer.
    "The Brazilian réal fell some 5 percent this week on fears
of U.S. protectionism, after Mr. Trump was elected President,
and there was big farmer selling in Brazil yesterday," Charlie
Sernatinger, global head of grain futures at ED&F Man Capital
said in a note to clients.
    All three commodities posted weekly losses, with the bearish
tone from the U.S. Agriculture Department's monthly supply and
demand and production reports hanging over the market.
    CBOT January soybean futures were down 12 cents at
$9.86 a bushel after rallying during the overnight trading
    "We had a big reversal lower in the Chinese soybean market,"
said Jim Gerlach, president of A/C trading. "Once that reversal
locked in, we saw some weakness in the U.S. market."
    Additionally, the pace of U.S. soybean shipments also was
lagging behind previous years, despite a USDA forecast for
record exports, Gerlach said.
    Some traders said that a Chinese investment fund was forced
to liquidate its holdings, which helped spark the initial
    CBOT December corn was 3-1/4 cents lower at $3.40-1/4
a bushel while CBOT December wheat was down 1-3/4 cents at
$4.03 a bushel.
    For the week, soybeans were down 0.3 percent, corn was down
2.3 percent and wheat was down 2.7 percent. Those would mark the
biggest weekly declines for both corn and wheat since late
    Egypt's state grain buyer GASC said it had bought 60,000
tonnes of Russian wheat. Traders said GASC had purchased the
wheat from Aston at $192.50 a tonne free-on-board (FOB) and
$9.64 a tonne freight equating to $202.14 a tonne cost and
    There was no U.S. wheat offered in the Egyptian tender.

 (Additional reporting by Naveen Thukral in Singapore and Nigel
Hunt in London; editing by Marguerita Choy)
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