Investing.com - U.S. grain futures were little changed during European morning hours on Tuesday, with soybean and corn prices underpinned by lingering concerns over dismal crop conditions in the U.S. Midwest and Great Plains-region.
Grain traders were also monitoring tropical storm activity in the Gulf of Mexico and southern U.S. states, amid concerns over a disruption to supplies from the region.
The U.S. National Hurricane Center said late Monday that Tropical Storm Isaac was expected to strengthen to a Category 2 hurricane as it moved towards Louisiana.
Escalating concerns over the impact of the worst drought in at least 56 years in the U.S. Midwest and Great Plains-region have fuelled a furious rally in grain prices over the past two months.
Corn prices have surged nearly 55% during the period, wheat futures soared approximately 40%, while soy prices added 30%.
On the Chicago Mercantile Exchange, soybeans futures for November delivery traded at USD17.1812 a bushel, easing down 0.05%.
The November contract was stuck in a tight trading range of USD17.3088 a bushel, the daily high and session low of USD17.0938 a bushel.
Prices touched a record high of USD17.7762 a bushel on July 20.
The USDA’s weekly crop progress report showed that 30% of the soybean crop was rated ‘good’ to ‘excellent’ as of August 26, down 1% from the previous week and significantly below the 57% recorded in the same week a year earlier.
U.S. soy crop conditions remain at the lowest levels since 1988 for this time of year.
Soy futures have gained sharply in recent weeks, as the same hot, dry weather that boosted corn buoyed soy futures as well. Soybeans are grown in many of the same regions across the U.S. as corn.
Agriculture-advisory firm Pro Farmer last week predicted a U.S. soybean crop of 2.60 billion bushels with an average yield of 34.8 bushels per acre. The USDA had predicted earlier in the month that U.S. farmers will harvest 2.69 billion bushels, down 12% from last year.
Elsewhere, corn futures for December delivery traded at USD7.9850 a bushel, shedding 0.35%. The December contract was stuck in a tight trading range of USD7.9562 a bushel, the daily low and a session high of USD8.0462 a bushel.
Front-month prices touched an all-time high of USD8.4237 a bushel on August 10.
The USDA said 22% of the U.S. corn crop was rated in ‘good’ to excellent’ condition as of last week, down from 23% the previous week and below the 54% recorded in the same week a year earlier.
The share of the U.S. corn crop that was rated ‘poor’ to ‘very poor’ rose 1% from a week earlier to 52%.
The report showed that 15% of the crop in Iowa was rated ‘good’ to ‘excellent’, unchanged from the previous week, while only 4% of the crop was rated ‘good’ to ‘excellent’ in Illinois.
Iowa and Illinois are the two largest corn growing states in the U.S., accounting for nearly 29% of U.S. supplies.
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.
Meanwhile, wheat for December delivery traded at USD8.8175 a bushel, easing up 0.1%. The December contract traded in between a narrow range of USD8.7150 a bushel, the daily low and a session high of USD8.8650.
Wheat futures have rallied in recent weeks amid growing concerns over a disruption to exports from Russia.
Mounting fears over dry weather conditions in Western Australia, the largest wheat producing state in Australia, further supported gains.
However, prices have given back some of those gains as market players sold positions after agricultural meteorologists predicted much-needed rainfall in portions of the U.S. winter wheat-growing region.
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.
Grain traders were also monitoring tropical storm activity in the Gulf of Mexico and southern U.S. states, amid concerns over a disruption to supplies from the region.
The U.S. National Hurricane Center said late Monday that Tropical Storm Isaac was expected to strengthen to a Category 2 hurricane as it moved towards Louisiana.
Escalating concerns over the impact of the worst drought in at least 56 years in the U.S. Midwest and Great Plains-region have fuelled a furious rally in grain prices over the past two months.
Corn prices have surged nearly 55% during the period, wheat futures soared approximately 40%, while soy prices added 30%.
On the Chicago Mercantile Exchange, soybeans futures for November delivery traded at USD17.1812 a bushel, easing down 0.05%.
The November contract was stuck in a tight trading range of USD17.3088 a bushel, the daily high and session low of USD17.0938 a bushel.
Prices touched a record high of USD17.7762 a bushel on July 20.
The USDA’s weekly crop progress report showed that 30% of the soybean crop was rated ‘good’ to ‘excellent’ as of August 26, down 1% from the previous week and significantly below the 57% recorded in the same week a year earlier.
U.S. soy crop conditions remain at the lowest levels since 1988 for this time of year.
Soy futures have gained sharply in recent weeks, as the same hot, dry weather that boosted corn buoyed soy futures as well. Soybeans are grown in many of the same regions across the U.S. as corn.
Agriculture-advisory firm Pro Farmer last week predicted a U.S. soybean crop of 2.60 billion bushels with an average yield of 34.8 bushels per acre. The USDA had predicted earlier in the month that U.S. farmers will harvest 2.69 billion bushels, down 12% from last year.
Elsewhere, corn futures for December delivery traded at USD7.9850 a bushel, shedding 0.35%. The December contract was stuck in a tight trading range of USD7.9562 a bushel, the daily low and a session high of USD8.0462 a bushel.
Front-month prices touched an all-time high of USD8.4237 a bushel on August 10.
The USDA said 22% of the U.S. corn crop was rated in ‘good’ to excellent’ condition as of last week, down from 23% the previous week and below the 54% recorded in the same week a year earlier.
The share of the U.S. corn crop that was rated ‘poor’ to ‘very poor’ rose 1% from a week earlier to 52%.
The report showed that 15% of the crop in Iowa was rated ‘good’ to ‘excellent’, unchanged from the previous week, while only 4% of the crop was rated ‘good’ to ‘excellent’ in Illinois.
Iowa and Illinois are the two largest corn growing states in the U.S., accounting for nearly 29% of U.S. supplies.
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.
Meanwhile, wheat for December delivery traded at USD8.8175 a bushel, easing up 0.1%. The December contract traded in between a narrow range of USD8.7150 a bushel, the daily low and a session high of USD8.8650.
Wheat futures have rallied in recent weeks amid growing concerns over a disruption to exports from Russia.
Mounting fears over dry weather conditions in Western Australia, the largest wheat producing state in Australia, further supported gains.
However, prices have given back some of those gains as market players sold positions after agricultural meteorologists predicted much-needed rainfall in portions of the U.S. winter wheat-growing region.
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.