Investing.com - U.S. grain futures were mixed during European morning trade on Thursday, with corn and soy prices extending gains from the previous session to trade close to two-week highs.
Elsewhere, wheat prices were largely unchanged as investors continued to monitor U.S. crop conditions.
Agricultural commodities received a lift from growing expectations the Federal Reserve will consider more action to stimulate growth in the U.S.
Hopes for such action were lifted by comments from Fed Vice chair Janet Yellen, who said in a speech Wednesday that the central bank could further ease monetary conditions in response to ongoing housing problems, a weak jobs market and the escalating euro zone crisis.
Her comments came after Atlanta Federal Reserve President Dennis Lockhart said that sustained weakness in the job market could justify more action to support the economic recovery.
Attention now shifts to a Congressional testimony by Federal Reserve Chairman Ben Bernanke later in the day about the state of the U.S. economy. Traders will be looking for any hints that the Fed is considering more monetary stimulus.
The Wall Street Journal, citing interviews and Fed speeches, reported late Tuesday that the Fed was mulling new measures to stimulate growth in the world’s largest economy.
The news prompted investors to pile in to riskier assets, such as stocks and commodities.
On the Chicago Mercantile Exchange, corn futures for July delivery traded at USD5.8888 a bushel, climbing 0.55%. It earlier rose by as much 0.7% to trade at USD5.9038 a bushel, the highest since May 24.
Prices touched a 17-month low of USD5.5138 a bushel on June 1.
Corn prices have been well-supported below the USD6.00-level, amid speculation lower prices would encourage China to boost purchases of U.S. corn.
China’s state-owned grain-stockpiling agency, Sinograin, said last month that it was ready boost purchases to replenish depleted reserves if the prices are attractive.
China is expected to raise its 2012-13 corn imports to 6 million tonnes, up from the 2011-12 estimates of 5.5 million tonnes.
Concerns that dry soil in the U.S. corn-belt could strain the development of crops in the region provided further support.
The U.S. produced 38% of the world's corn last year, making it the both world's largest corn producing nation and the largest exporter of the grain, while China is the world’s largest consumer of the grain.
Elsewhere, soybeans futures for July delivery traded at USD13.9513 a bushel, adding 0.65%. It earlier rose by as much as 0.75% to trade at USD13.9613 a bushel, the highest since May 29.
Prices fell to a seven-week low of USD13.2688 a bushel on June 1.
Soy prices advanced after the U.S. Department of Agriculture said Wednesday that U.S. farmers sold 120,000 metric tons of soybeans to China for delivery in the current crop year ending August 31.
China is the world’s largest soybean consumer and is expected to account for nearly 60% of global trade of the grain in the 2011-12 season, according to the USDA.
Meanwhile, renewed concerns over crops in Brazil lent further support.
Soy prices rallied nearly 19% in the first five months of the year, as market sentiment was dominated by concerns over distressed crops in major South American soy growers.
But futures are down nearly 11.5% since touching a four-year high of USD15.1237 a bushel on May 2, as hedge funds and large institutional investors unwound long positions.
Meanwhile, wheat for July delivery traded at USD6.2438 a bushel, easing up 0.1%. The July contract traded in between a range of USD6.2625, the daily high and a session low of USD6.2038.
Wheat prices have been on the decline since touching an eight-month high of USD7.2138 on May 21, as technical selling and rains in parts of Russia and Australia eased crop concerns.
Australia is the world’s second-largest wheat shipper and Russia is the fourth-biggest in the 2012-2013 season, according to the U.S. Department of Agriculture.
Corn is the biggest U.S. crop, valued at USD66.7 billion in 2010, followed by soybeans at USD38.9 billion, government figures show. Wheat was fourth at USD13 billion, behind hay.
The weekly U.S. Department of Agriculture export sales report will be released later in the day.
Elsewhere, wheat prices were largely unchanged as investors continued to monitor U.S. crop conditions.
Agricultural commodities received a lift from growing expectations the Federal Reserve will consider more action to stimulate growth in the U.S.
Hopes for such action were lifted by comments from Fed Vice chair Janet Yellen, who said in a speech Wednesday that the central bank could further ease monetary conditions in response to ongoing housing problems, a weak jobs market and the escalating euro zone crisis.
Her comments came after Atlanta Federal Reserve President Dennis Lockhart said that sustained weakness in the job market could justify more action to support the economic recovery.
Attention now shifts to a Congressional testimony by Federal Reserve Chairman Ben Bernanke later in the day about the state of the U.S. economy. Traders will be looking for any hints that the Fed is considering more monetary stimulus.
The Wall Street Journal, citing interviews and Fed speeches, reported late Tuesday that the Fed was mulling new measures to stimulate growth in the world’s largest economy.
The news prompted investors to pile in to riskier assets, such as stocks and commodities.
On the Chicago Mercantile Exchange, corn futures for July delivery traded at USD5.8888 a bushel, climbing 0.55%. It earlier rose by as much 0.7% to trade at USD5.9038 a bushel, the highest since May 24.
Prices touched a 17-month low of USD5.5138 a bushel on June 1.
Corn prices have been well-supported below the USD6.00-level, amid speculation lower prices would encourage China to boost purchases of U.S. corn.
China’s state-owned grain-stockpiling agency, Sinograin, said last month that it was ready boost purchases to replenish depleted reserves if the prices are attractive.
China is expected to raise its 2012-13 corn imports to 6 million tonnes, up from the 2011-12 estimates of 5.5 million tonnes.
Concerns that dry soil in the U.S. corn-belt could strain the development of crops in the region provided further support.
The U.S. produced 38% of the world's corn last year, making it the both world's largest corn producing nation and the largest exporter of the grain, while China is the world’s largest consumer of the grain.
Elsewhere, soybeans futures for July delivery traded at USD13.9513 a bushel, adding 0.65%. It earlier rose by as much as 0.75% to trade at USD13.9613 a bushel, the highest since May 29.
Prices fell to a seven-week low of USD13.2688 a bushel on June 1.
Soy prices advanced after the U.S. Department of Agriculture said Wednesday that U.S. farmers sold 120,000 metric tons of soybeans to China for delivery in the current crop year ending August 31.
China is the world’s largest soybean consumer and is expected to account for nearly 60% of global trade of the grain in the 2011-12 season, according to the USDA.
Meanwhile, renewed concerns over crops in Brazil lent further support.
Soy prices rallied nearly 19% in the first five months of the year, as market sentiment was dominated by concerns over distressed crops in major South American soy growers.
But futures are down nearly 11.5% since touching a four-year high of USD15.1237 a bushel on May 2, as hedge funds and large institutional investors unwound long positions.
Meanwhile, wheat for July delivery traded at USD6.2438 a bushel, easing up 0.1%. The July contract traded in between a range of USD6.2625, the daily high and a session low of USD6.2038.
Wheat prices have been on the decline since touching an eight-month high of USD7.2138 on May 21, as technical selling and rains in parts of Russia and Australia eased crop concerns.
Australia is the world’s second-largest wheat shipper and Russia is the fourth-biggest in the 2012-2013 season, according to the U.S. Department of Agriculture.
Corn is the biggest U.S. crop, valued at USD66.7 billion in 2010, followed by soybeans at USD38.9 billion, government figures show. Wheat was fourth at USD13 billion, behind hay.
The weekly U.S. Department of Agriculture export sales report will be released later in the day.