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Wheat futures trade close to 6-week low on U.S. rainfall

Published 04/16/2015, 05:50 AM
Updated 04/16/2015, 05:50 AM
© Reuters.  Wheat futures decline on forecasts for U.S. rainfall

Investing.com - U.S. wheat futures traded close to a six-week low on Thursday, after agricultural meteorologists forecast further rains in key U.S. wheat-growing states.

On the Chicago Mercantile Exchange, US wheat for May delivery hit a session low of $4.9000 a bushel, the weakest level since March 10, before trading at $4.9163 during U.S. morning hours, up 1.02 cents, or 0.21%.

A day earlier, wheat lost 6.2 cents, or 1.26%, to settle at $4.9060, as updated weather models forecast much-needed rains in key U.S. wheat-growing states.

The U.S. Department of Agriculture said Monday that the U.S. winter wheat crop was rated 42% good to excellent as of April 12, down from 44% in the preceding week.

Approximately 34% of the crop was in good to excellent condition in the same week a year earlier.

The agency also said that 17% of the spring wheat crop was planted as of last week, compared to just 5% in the same week a year earlier and below the five-year average of 11% for this time of year.

Meanwhile, US corn for May delivery slumped 1.48 cents, or 0.39%, to trade at $3.7513 a bushel. On Wednesday, corn tacked on 2.4 cents, or 0.67%, to close at $3.7600.

Prices remained supported amid concerns over wet weather delaying planting in the U.S. grain belt. According to the USDA, 2% of the corn crop was planted as of last week. The five-year average for this time of year is 5%.

Elsewhere on the Chicago Board of Trade, US soybeans for May delivery shed 1.12 cents, or 0.12%, to trade at $9.6388 a bushel. Soybean prices inched up 4.6 cents, or 0.49%, on Wednesday to end at $9.6500.

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Prices of the oilseed touched a six-month low of $9.4440 on April 10 as optimism over the outlook for supplies in South America and weak demand for U.S. supplies drove down prices.

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.

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