Investing.com - U.S. grain futures were lower during European morning hours on Tuesday, with wheat and corn prices extending losses from the previous session to hit multi-week lows after weather forecasts predicted improving crop weather.
Prices came under additional pressure as selling continued following last week’s bearish U.S. Department of Agriculture global supply report.
On the Chicago Mercantile Exchange, wheat for March delivery traded at USD7.3800 a bushel, down 0.4% on the day.
The March contract fell by as much as 0.7% earlier in the session to hit a daily low of USD7.3662 a bushel, the weakest level since January 10.
Concerns over crop conditions in the U.S. Great Plains eased on Monday after rain and snow fell in the drought-stricken region.
Wheat traders have been closely monitoring weather and crop conditions in the area, where prolonged dryness threatens now-dormant winter wheat crops.
Last’s week’s bearish U.S. government crop forecast continued to weigh. According to the USDA, global wheat inventories at the end of the year will be 176.73 million metric tons, up from the month-earlier estimate of 176.64 million
Meanwhile, corn futures for March delivery traded at USD6.9650 a bushel, down 0.75% on the day. The March contract fell by as much as 0.9% earlier to hit a session low of USD6.9412 a bushel, the weakest level since January 11.
Corn’s losses accelerated after prices broke below the key USD7.00-a-bushel level, triggering fresh sell orders amid bearish chart signals.
Sentiment on the grain remained downbeat after the USDA said last week U.S. stockpiles before the next harvest will be 5% larger than forecast a month ago. U.S. inventories will total 632 million bushels on August 31, up from 602 million forecast in January.
The upward revision reflected slowing demand for U.S. supplies. U.S. exporters will sell 900 million bushels of corn in the current marketing season, down from 950 million forecast last month and the lowest since 1972.
The data also showed that global inventories of the grain on October 1 will be 118.04 million tons, up from 115.99 million predicted a month earlier.
Elsewhere, soybeans futures for March delivery traded at USD14.3388 a bushel, up 0.2% on the day. The March contract held in between a tight range of USD14.2962 a bushel, the daily low and a session high of USD14.3662 a bushel.
Soy prices regained strength as the previous session’s drop to a three-week low prompted investors to return to the market to seek cheap valuations.
Soy prices fell to USD14.2937 a bushel on Monday after the USDA forecast larger-than-expected inventories of the oilseed last week.
Soybean inventories on October 1 will total 60.12 million metric tons, more than the 59.46 million estimated in January and 8.8% higher than a year earlier
Expectations for bumper crops in major South American soy growers also added to the selling pressure.
The USDA said Brazil will harvest a record 83.5 million tonnes of soybeans this spring, on pace to pass the U.S. as the top producer for the first time.
Combined soybean production in Brazil and Argentina will rise 28% to a record 136.5 million
World production will total a record 269.5 million tons in the current marketing year, more than the 269.41 million forecast in January. In the previous season, global output totaled 238.73 million tons.
Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.
Prices came under additional pressure as selling continued following last week’s bearish U.S. Department of Agriculture global supply report.
On the Chicago Mercantile Exchange, wheat for March delivery traded at USD7.3800 a bushel, down 0.4% on the day.
The March contract fell by as much as 0.7% earlier in the session to hit a daily low of USD7.3662 a bushel, the weakest level since January 10.
Concerns over crop conditions in the U.S. Great Plains eased on Monday after rain and snow fell in the drought-stricken region.
Wheat traders have been closely monitoring weather and crop conditions in the area, where prolonged dryness threatens now-dormant winter wheat crops.
Last’s week’s bearish U.S. government crop forecast continued to weigh. According to the USDA, global wheat inventories at the end of the year will be 176.73 million metric tons, up from the month-earlier estimate of 176.64 million
Meanwhile, corn futures for March delivery traded at USD6.9650 a bushel, down 0.75% on the day. The March contract fell by as much as 0.9% earlier to hit a session low of USD6.9412 a bushel, the weakest level since January 11.
Corn’s losses accelerated after prices broke below the key USD7.00-a-bushel level, triggering fresh sell orders amid bearish chart signals.
Sentiment on the grain remained downbeat after the USDA said last week U.S. stockpiles before the next harvest will be 5% larger than forecast a month ago. U.S. inventories will total 632 million bushels on August 31, up from 602 million forecast in January.
The upward revision reflected slowing demand for U.S. supplies. U.S. exporters will sell 900 million bushels of corn in the current marketing season, down from 950 million forecast last month and the lowest since 1972.
The data also showed that global inventories of the grain on October 1 will be 118.04 million tons, up from 115.99 million predicted a month earlier.
Elsewhere, soybeans futures for March delivery traded at USD14.3388 a bushel, up 0.2% on the day. The March contract held in between a tight range of USD14.2962 a bushel, the daily low and a session high of USD14.3662 a bushel.
Soy prices regained strength as the previous session’s drop to a three-week low prompted investors to return to the market to seek cheap valuations.
Soy prices fell to USD14.2937 a bushel on Monday after the USDA forecast larger-than-expected inventories of the oilseed last week.
Soybean inventories on October 1 will total 60.12 million metric tons, more than the 59.46 million estimated in January and 8.8% higher than a year earlier
Expectations for bumper crops in major South American soy growers also added to the selling pressure.
The USDA said Brazil will harvest a record 83.5 million tonnes of soybeans this spring, on pace to pass the U.S. as the top producer for the first time.
Combined soybean production in Brazil and Argentina will rise 28% to a record 136.5 million
World production will total a record 269.5 million tons in the current marketing year, more than the 269.41 million forecast in January. In the previous season, global output totaled 238.73 million tons.
Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.