Newly announced government loan rates weakened grain futures prices, and to some extent soybeans, in trading Tuesday at the Chicago Board of Trade.
Prices were mixed at the close, with some good commercial buying lending support as well as renewed concern over the soybean crop in Brazil, analysts said.
The pressure from the loan rates, announced Monday by Agriculture Secretary John Block, was applied mostly on contracts for delivery in the more distant months.
Weather reports out of Brazil, where a drought has been severely stressing the soybean crop, drove futures prices higher for the nearby contracts. Analysts said rain that had been predicted for Wednesday and Thursday have been taken out of the latest forecasts.