Forexpros – U.S. corn and wheat futures were little changed on Friday, as commodity traders continued to eye developments out of Greece in regards to its debt crisis, while soybean futures came under pressure amid concerns over a slowdown in global demand.
Agricultural commodities continued to be affected by outside influences on Friday as market sentiment was dented after leaders of the Group of 20 industrialized nations failed to agree on a plan to enhance the euro zone’s response to its sovereign debt crisis
At the conclusion of a two-day summit in Cannes, German Chancellor Angela Merkel said that few G-20 countries showed interest in providing additional resources to the European Financial Stability Facility.
Meanwhile, investors remained jittery ahead of a highly-anticipated government confidence vote in Greece, amid growing internal opposition to Prime Minister George Papandreou’s handling of the country’s sovereign debt crisis.
Also Friday, the U.S. Department of Labor said in a report that the unemployment rate declined unexpectedly to a six-month low of 9.0% in October, down from 9.1% the previous month.
The data showed that nonfarm payrolls rose by 80,000 in October, falling short of expectations for a gain of 95,000.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, rose 0.28% to trade at 77.12.
A stronger dollar reduces the appeal of U.S. crops to overseas buyers and makes commodities less attractive as an alternative investment.
On the Chicago Mercantile Exchange, corn futures for December delivery traded at USD6.5488 per bushel by close of trade on Friday, edging 0.2% higher over the week.
Corn prices remained supported by strong demand from ethanol producers, as well as speculation that the USDA will further reduce its U.S. crop projection.
Elsewhere on the Chicago Board of Trade, wheat for December delivery slumped 1.35% over the week to settle at USD6.3600 a bushel on Friday, the first weekly decline in four.
Concerns over U.S. winter-wheat crop conditions eased after weather forecasts showed rainfall was expected over most parts of the U.S. Southern Plains over the next seven-to-ten-days.
Meanwhile, the U.S. Department of Agriculture said Friday that Australia’s wheat harvest was forecast to total 26 million tonnes, bringing the estimate closer to last year’s record-high harvest of 26.3 million tonnes.
Australia is a major wheat exporter and competes with the U.S. for business on the global market. Large crop prospects in Australia could weigh on demand for U.S. supplies, which is the world’s third largest wheat producer and biggest exporter.
Meanwhile, soybeans for January delivery edged 0.6% lower on the week to settle at USD12.2038 a bushel by close of trade Friday.
Soybean prices came under pressure Friday after a strike by Argentine soy-processing workers at the country’s main grains port in Rosario ended by government order. The protest began late on Wednesday, sending soybean futures up nearly 2.2% on Thursday. Argentina is the world’s third largest soybean exporter.
USDA data showing that soybeans inspected for delivery at U.S. ports last week fell 8% from a week earlier to a four-month low of 209,700 tonnes also weighed.
Corn is the biggest U.S. crop, valued at USD66.7 billion in 2010, followed by soybeans at USD38.9 billion, government figures show. Wheat was fourth at USD13 billion, behind hay.
In the week ahead, volatile trading was expected ahead of the U.S. Department of Agriculture’s monthly World Supply and Demand Estimates report due Wednesday, while the USDA’s weekly report on U.S. crop progress scheduled for Monday will also be in focus.
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