Chicago agricultural commodities close mixed ahead of holiday

Chicago agricultural commodities close mixed Friday, with corn rising, and wheat and soybeans dropping. The most active corn contract for July delivery rose 1.25 cents, or 0.26 percent, to 4.78 U.S. dollars per bushel. July wheat dropped 6.75 cents, or 1.02 percent, to 6.525 dollars per bushel. July soybeans lost 3.25 cents, or 0.21 percent, to 15.155 dollars per bushel. Profit taking and light trade volume dominated the grain markets ahead of the long weekend, as the market will be closed on Monday for the Memorial Day holiday. Corn rose slightly Friday, underpinned by strong demand after China waived the 13-percent VAT tax on reserve soybeans and corn. It is estimated that China may have as much as 70 million tonnes of reserve corn to sell. Market analysts estimated total Chinese corn stocks near 100 million tonnes. Soybeans fell as the Argentine government confirmed that it has reduced the soy biodiesel tax rate to 11 percent from 21 percent in response to EU duties. Even Brazil is expected to rise its bio diesel mandate in July and again in November. The problem here is that world crushers will enjoy better margins, and there will be an excessive amount of soybean meal to be exported. The U.S. Department of Agriculture on Friday confirmed private sales of 33,000 tonnes of new-crop soybeans to China an unknown destination. Wheat fell Friday as Central U.S. weather forecast remains nearly ideal for late May and early June with a chance of daily showers and near to above normal temperatures. Planting efforts across the Plains and Midwest are pushing ahead strongly and most will be completed with seeding by the closing days of May. Market analysts believed that as funds begin to roll out of July contracts, and weather in Central U.S., European and China remains favorable, rally in corn, soybeans and wheat markets will be difficult to sustain next week.