GRAINS-U.S. corn, soybeans fall after Supreme Court ruling on biofuel blending
By Mark Weinraub
CHICAGO, June 25 (Reuters) - Corn and soybean futures fell to one-week lows on Friday after a U.S. Supreme Court ruling bolstered a bid by small oil refineries seeking exemptions from laws requiring them to blend ethanol or other biofuels into their products, traders said.
"That is a bearish kind of a situation," said Greg Grow, director of agribusiness at Archer Financial Services. "That certainly is not good news on the demand side."
The closely watched Supreme Court case, reflecting a long-running dispute between the oil and corn industries, was seen as a major setback for biofuel producers.
Winter wheat futures also fell, with the most-active Chicago Board of Trade soft red winter wheat contract hitting its lowest since mid-April, as the ongoing harvest in the northern hemisphere boosted supplies.
The corn and soybean markets also faced pressure from some much-needed rains across large swaths of key U.S. growing areas.
"The heart of the Corn Belt is getting a good shot of rain at a very timely moment," Grow said.
At 10:55 a.m. CDT (1555 GMT), CBOT December corn futures were down 15-1/2 cents at $5.20-1/2 a bushel and CBOT November soybeans were 23-1/2 cents lower at $12.68-1/4.
"The long-awaited rains in the Iowa region are particularly welcome," consultancy Agritel said in a note, referring to the largest U.S. corn-producing state.
Market participants are increasingly turning their attention toward the U.S. Department of Agriculture's June 30 acreage report. Analysts expected the USDA to increase corn and soy area estimates compared with its March projections.
CBOT September soft red winter wheat futures were down 12 cents at $6.40 a bushel.
But MGEX spring wheat futures for September delivery were up 6-3/4 cents at $8.12 a bushel as the crop in the northern U.S. Plains and Black Sea has been stressed by drought. (Additional reporting by Gus Trompiz in Paris and Colin Packham in Canberra; Editing by Amy Caren Daniel, David Evans and Dan Grebler)
