Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

U.S. wheat drops from 5-week high as crop conditions improve

Published 03/24/2015, 07:11 AM
Updated 03/24/2015, 07:11 AM
U.S. wheat futures decline as crop conditions improve

Investing.com - U.S. wheat futures fell from the previous session's five-week peak on Tuesday, after the U.S. Department of Agriculture revealed that winter-wheat crop conditions improved last week.

On the Chicago Mercantile Exchange, US wheat for May delivery fell 5.28 cents, or 0.99%, to trade at $5.2813 a bushel during U.S. morning hours.

A day earlier, prices touched $5.4038, the most since February 18, before settling at $5.3400, up 4.0 cents, or 0.75%.

According to the USDA, Oklahoma winter wheat was rated 44% good to excellent, compared to 40% in the previous week, while Texas winter wheat improved by 4% to 55%.

In Kansas, the top wheat-producing state, the wheat crop was rated 41% good to excellent, unchanged from the previous week.

Meanwhile, US corn for May delivery tacked on 0.97 cents, or 0.25%, to trade at $3.9038 a bushel. US corn for May delivery hit $3.9160 on Monday, the highest since March 12, before ending at $3.9020, up 5.2 cents, or 1.36%.

Corn prices were supported amid bullish chart signals after futures broke above key moving-averages.

Elsewhere on the Chicago Board of Trade, US soybeans for May delivery inched down 1.48 cents, or 0.15%, to trade at $9.8113 a bushel. On Monday, US soybeans for May delivery touched $9.9000, the strongest level since March 13, before closing at $9.8340, up 9.6 cents, or 1.0%.

Optimism over the outlook for supplies in Brazil and Argentina combined with indications over a slowdown in demand for U.S. soybeans have weighed on prices in recent weeks.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

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.

Meanwhile, the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.3% to 96.91 early on Tuesday.

The greenback remained under pressure amid uncertainty over the path of U.S. monetary policy after the Federal Reserve downgraded its forecasts for growth and inflation and lowered its interest rate projections last week.

A weaker dollar increases the appeal of U.S. crops to overseas buyers and makes commodities more attractive as an alternative investment.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.