Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Grains futures under pressure ahead of USDA supply report

Published 02/06/2013, 05:52 AM
Updated 02/06/2013, 05:52 AM

Investing.com - U.S. grain futures were mostly lower during European morning hours on Wednesday, with wheat and corn prices falling to multi-week lows ahead of Friday’s highly-anticipated U.S. Department of Agriculture report on U.S. and global grain supplies.

On the Chicago Mercantile Exchange, wheat for March delivery traded at USD7.5338 a bushel, down 0.55% on the day.

The March fell by as much as 0.65% earlier in the session to hit a daily low of USD7.5262 a bushel, the weakest level since January 11.

U.S. wheat inventories may total 717 million bushels in the current marketing year, up from the USDA’s January forecast of 716 million bushels.

Wheat prices came under additional pressure after forecasts called for much-needed rain in the southern U.S. Great Plains, helping to alleviate dry conditions and potentially boosting the quality of the crop.

Meanwhile, corn futures for March delivery traded at USD7.2412 a bushel, down 0.5% on the day. The March contract fell by as much as 0.6% earlier to hit a session low of USD7.2388 a bushel, the weakest level since January 28.

Corn reserves as of September 1 may be 616 million bushels, compared to the USDA’s forecast last month of 602 million bushels.

Forecasts showing beneficial weather conditions in Argentina also contributed to losses.

Corn prices have been under heavy selling pressure since hitting a two-month high of USD7.4612 a bushel on February 1, as concerns that high prices will dent demand for U.S. supplies weighed.

Elsewhere, soybeans futures for March delivery traded at USD14.8388 a bushel, down 0.75% on the day. The March contract declined by as much as 0.85% earlier in the day to hit a session low of USD14.8350 a bushel.

Soy prices came under pressure as a bout of profit-taking kicked in ahead Friday’s USDA supply and demand report.

Soy prices rallied to a seven-week high of USD14.9787 a bushel on February 4 as a combination of concerns over crop conditions in South America and indications of robust demand from top consumer China supported prices.

The USDA was expected to cut its U.S. and global soy ending stocks forecast, due to reduced South American production and resilient demand for U.S. soybeans.

Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.