We have updated our privacy policy and terms & conditions. Find out more here.
0
 

Wheat trade close to 3-week low as U.S. crop conditions improve

By Investing.comCommoditiesApr 18, 2012 10:18AM GMT Add a Comment
 
AA
+
-
Investing.com - Wheat futures edged modestly lower during European morning trade on Wednesday, hovering close to a three-week low as favorable weather conditions in key U.S. wheat-growing states aided the development of wheat crops.

Wheat trade close to 3-week low as U.S. crop conditions improve
On the Chicago Mercantile Exchange, wheat futures for May delivery traded at USD6.1512 a bushel during European morning trade, dipping 0.1%.

It earlier fell by as much as 0.3% to trade at USD6.1463 a bushel, the lowest since March 30.

The U.S. Department of Agriculture said in its weekly crop progress report published after markets closed Tuesday that approximately 64% of U.S. winter-wheat crops were rated in ‘good’ to ‘excellent’ condition as of April 15, up from 61% in the preceding week and significantly higher than 36% in the same week a year earlier.

The report showed that about 38% of the Texas wheat crop was in ‘good’ to ‘excellent’ condition, while 69% of the crop in Kansas was rated ‘good’ to ‘excellent’.

According to officials, crop development in Kansas was “two to three weeks ahead of the average. Kansas is the largest wheat-growing state in the U.S. while Texas is the fifth-largest.

The data added that almost 37% of the U.S. spring-wheat crop was planted as of last week, up from 21% a week earlier and significantly higher than the five-year average of just 9% for this time of year.

Some crop-friendly rainfall in the U.S. Midwest and Great Plains region last week aided the development of the crop, according to market participants.

The report came out a day later than usual, as Monday’s release was delayed due to a fire at a USDA building in Washington.     

The U.S. is the largest wheat exporter, followed by Australia and Russia, according to the USDA.

The above-average pace of U.S. spring-wheat plantings added to the view that global supplies of the grain are ample to meet demand.

In its Supply & Demand Estimate Report published earlier in the month, the USDA pegged global wheat supplies in the current marketing season at 206.27 million tons, the highest in 11 years.  

Global wheat production was projected at a record high 694.32 million tonnes, almost 7% above the previous season’s output level. The previous record was 685.59 million tonnes, recorded in the 2009-10 season.

Wheat prices have been under heavy selling pressure in recent sessions, losing almost 8% since March 30 on the view that global supplies are ample.

Elsewhere on the Chicago Mercantile Exchange, corn for May delivery eased up 0.2% to trade at USD6.1763 a bushel, while soybeans for May delivery shed 0.55% to trade at USD14.1725 a bushel.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Gold gains on Chinese rate cut
By 
Investing.com
 - Nov 21, 2014

Add a Comment

 

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

EUR/USD
 
 
 
Are you sure you want to delete this chart?
 
 
 
Are you sure you want to delete this chart?
 
 
 

Successfully Reported

Thank you. This comment has been flagged for a moderator.
_touchLoadingMsg