U.S. grains: Soybeans ease on South American rainfall

Chicago soybean futures dropped on Thursday, pressured by South American forecasts for more rain which could relieve parched soy crops in Argentina.

Corn and wheat weakened, holding on to some of the previous day’s gains as extreme winter weather threatens winter wheat crops in the U.S. Plains and Midwest.

The Chicago Board of Trade most-active soybean contract dipped 12-1/2 cents, to $14.72 a bushel (all figures US$).

Corn ended down 1-3/4 cents to $6.60-1/2 a bushel, after climbing to $6.64-3/4, its highest level since Dec. 1.

Wheat eased 5-1/2 cents to $7.62-1/2 a bushel, after climbing to $7.77 a bushel, its highest since Dec. 2.

“We got some unexpected heavier rains in Argentina overnight. The forecast turned a little wetter going forward,” said Karl Setzer, commodity risk analyst at Agrivisor. “Some of the risk premium that was put into the market yesterday, we’re pulling back out.”