Wheat, corn futures fall to multi-month lows on U.S. planting progress

Investing.com - U.S. wheat and corn futures fell to the lowest level in almost seven months on Tuesday, after a report from the U.S. Department of Agriculture showed rapid planting progress in the U.S. Midwest last week.

On the Chicago Mercantile Exchange, US wheat for July delivery hit an intraday low of $4.7113 a bushel, a level not seen since October 1, before trading at $4.7188 during U.S. morning hours, down 1.73 cents, or 0.36%.

A day earlier, wheat futures plunged 15.2 cents, or 3.12%, amid indications dry weather conditions in key U.S. wheat-growing states aided planting last week.

The U.S. Department of Agriculture said Monday that 55% of the spring wheat crop was planted as of April 26, up from 36% in the preceding week. Only 17% of the crop was planted in the same week a year earlier, while the five-year average for this time of year is 29%.

The agency also said that the U.S. winter wheat crop was rated 42% good to excellent as of last week. Approximately 33% of the crop was in good to excellent condition in the same week a year earlier.

Meanwhile, US corn for July delivery touched a session low of $3.6320 a bushel, the weakest level since November 20, before trading at $3.6363, down 0.78 cents, or 0.21%.

On Monday, corn lost 5.0 cents, or 1.35%, to close at $3.6460 after the USDA said that approximately 19% of the corn crop was planted as of April 26, up from just 9% in the preceding week.

Nearly 17% of the crop was planted during the same week a year earlier, while the five-year average for this time of year is 25%.

Elsewhere on the Chicago Board of Trade, US soybeans for July delivery inched up 2.60 cents, or 0.27%, to trade at $9.7600 a bushel. Prices of the oilseed tacked on 2.2 cents, or 0.23%, to settle at $9.7300.

According to the USDA, only 2% of the soybean crop was planted as of last week, compared to the 3% planted in the same week a year earlier. The five-year average for this time of year is 4%.

Gains were limited amid optimism over the outlook for supplies in South America. Brazil and Argentina are major soybean exporters and compete with the U.S. for business on the global market.

Large South American crop prospects could weigh on demand for U.S. supplies.

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