GRAINS-U.S. corn, soybeans fall after Supreme Court ruling on biofuel blending – Successful Farming

(Updates with U.S. trading, adds new analyst quote; changes
dateline; previous PARIS/CANBERRA)

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)

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