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U.S. soybean futures bounce off 7-month low on bargain buying

Published 05/21/2015, 06:09 AM
Updated 05/21/2015, 06:09 AM
U.S. soybeans rebound from 7-month low

U.S. soybeans rebound from 7-month low

Investing.com - U.S. soybean futures rose for the first time in three sessions on Thursday, as investors returned to the market to seek cheap valuations after prices fell to a seven-month low on Wednesday.

On the Chicago Mercantile Exchange, US soybeans for July delivery inched up 2.73 cents, or 0.29%, to trade at $9.4412 a bushel during U.S. morning hours.

A day earlier, prices of the oilseed fell to $9.3663, a level not seen since October 20, before settling at $9.4120, down 5.0 cents, or 0.53%.

Soybeans have been under pressure in recent sessions amid indications of rapid planting progress in the U.S. Midwest last week.

Nearly 45% of the soybean crop was planted as of May 17, according to the U.S. Department of Agriculture, up from 31% in the preceding week. Nearly 31% of the crop was planted in the same week a year earlier, while the five-year average for this time of year is 36%.

Meanwhile, US corn for July delivery tacked on 2.02 cents, or 0.56%, to trade at $3.6263 a bushel. On Wednesday, corn slumped 2.0 cents, or 0.55%, to close at $3.6000.

According to the USDA, approximately 85% of the corn crop was planted as of last week, up from 75% in the preceding week. Nearly 71% of the crop was planted during the same week a year earlier, while the five-year average for this time of year is 75%.

Corn emergence was 56% complete, improving from 29% a week earlier, while the average pace for mid-May is 40%.

Elsewhere on the Chicago Board of Trade, US wheat for July delivery rose 3.73 cents, or 0.73%, to trade at $5.1712 a bushel. Wheat prices increased 2.6 cents, or 0.54, on Wednesday to end at $5.1300.

Updated weather forecasting models pointed to more rainfall in the U.S. Great Plains-region later this week, which could potentially damage the maturing winter-wheat crop.

The USDA said that the U.S. winter wheat crop was rated 45% good to excellent as of last week, up from 44% in the preceding week.

The agency also said that nearly 94% of the spring wheat crop was planted, up from 87% in the preceding week. Only 47% of the crop was planted in the same week a year earlier, while the five-year average for this time of year is 65%.

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

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