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CHICAGO, Feb. 23 (Xinhua) -- Chicago Board of Trade (CBOT) grains futures close lower on Thursday with soybean futures falling to a six-week low on expectations for a big South American harvest and an expansion in U.S. plantings this spring.
Corn futures fell on chart-based selling while wheat posted modest declines.
The most active corn contract for May delivery fell 5.75 cent, or 1.52 percent, to 3.725 dollars per bushel. May wheat delivery fell 2.5 cents, or 0.55 percent, to 4.535 dollars per bushel. May soybeans fell 11 cents, or 1.06 percent, to 10.225 dollars per bushel.
In the outside markets, the Brent crude oil market is 0.83 dollar per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 50 points higher.
Jason Roose, U.S. Commodities grain analyst, says that multiple factors are pressuring the grain markets.
"With larger acres projected to be planted based on USDA government projections, improving South America corn and bean yields, and with a South Korea corn cancellation from their export lineup, U.S. prices may be overvalued with Brazil and Argentina competing for market share," Roose says.
Soybeans fell after the U.S. Department of Agriculture at its annual outlook conference projected U.S. soybean plantings for 2017 at 88.0 million acres, a record high if realized.
South American farmers are expected to produce a massive crop, with the harvest already well under way in Brazil.
Agroconsult, a Brazilian consultancy, on Wednesday raised its forecast for the country's 2016/17 soy crop to 107.8 million tons, up from its Feb. 8 estimate of 105.3 million tons.
Commodity funds recently shifted from a net short position in CBOT corn futures to a net long, leaving the market vulnerable to long liquidation. Enditem
