Grain futures - Wheat, corn rally to multi-week highs
Investing.com
Published Mar 20, 2013 07:05AM ET
On the Chicago Mercantile Exchange, wheat for May delivery traded at USD7.3075 a bushel, up 1.15% on the day.
The May contract rose by as much as 1.2% earlier in the session to hit a daily high of USD7.3100 a bushel, the strongest level since February 21.
Tunisia's state grains agency purchased 67,000 tonnes of U.S. soft wheat for delivery in May on Tuesday.
Japan’s agriculture ministry said it was planning to purchase 76,848 metric tons of U.S. wheat at a tender later Wednesday.
Wheat prices have been well-supported in recent sessions as traders bet that demand for U.S. wheat will increase after prices fell to an eight-month low of USD6.8125 a bushel on March 6.
Meanwhile, corn futures for May delivery traded at USD7.3088 a bushel, up 0.35% on the day. The May contract rose by as much as 0.4% earlier in the session to hit a daily high of USD7.3112 a bushel, the strongest level since February 5.
Corn futures have been on an upward trend in recent sessions after the U.S. Department of Agriculture said last week that U.S. stockpiles before the next harvest will total 632 million bushels, the lowest level in 17 years.
The May contract has rallied nearly 7% since falling close to a three-month low of USD6.8212 a bushel on March 7.
Elsewhere, soybeans futures for May delivery traded at USD14.1625 a bushel, up 0.7% on the day. The May contract rose by as much as 0.8% earlier to hit a daily high of USD14.1788 a bushel.
The May contract fell to a three-month low of USD14.0312 a bushel on Tuesday, amid growing concerns over diminishing demand for U.S. supplies.
Prices have been on a downward trend in recent weeks as market players feared expectations for a bumper crop in Brazil and Argentina could result in lower demand for U.S. supplies.
Brazil and Argentina are major soy 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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Written By: Investing.com
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