Grain futures lower - Soybeans, corn decline for 2nd day

Investing.com - U.S. grain futures were lower during early U.S. morning hours on Monday, with soybean and corn prices moving further off last week’s highs as a round of profit-taking continued for a second session.

Trading volume was light as market players remained cautious ahead of the U.S. Department of Agriculture's end-of-month reports on quarterly grain stocks and prospective plantings.

On the Chicago Mercantile Exchange, soybeans futures for May delivery traded at USD14.3238 a bushel, down 0.6% on the day. The May contract fell by as much as 0.75% earlier in the session to hit a daily low of USD14.3138 a bushel, the weakest level since March 21.

CBOT soy prices rose to a two-week high of USD14.4987 a bushel on March 21, as shipping delays out of major South American producer Brazil fuelled speculation global importers will switch to U.S. supplies.

The news helped ease concerns that a bumper crop in the South American country could result in lower demand for U.S. supplies.

Brazil is a major soy exporter and competes with the U.S. for business on the global market. Large South American crop prospects could weigh on demand for U.S. supplies.

Meanwhile, corn futures for May delivery traded at USD7.2388 a bushel, down 0.25% on the day. The May contract declined by as much as 0.5% earlier in the day to hit a session low of USD7.2238 a bushel.

Corn futures were lower as traders continued to cash out of the market to lock in gains from a recent rally that took prices to a six-week high of USD7.3437 a bushel on March 21.

Corn futures have been on an upward trend in recent weeks after the U.S. Department of Agriculture said earlier in the month that U.S. stockpiles before the next harvest will total 632 million bushels, the lowest level in 17 years.

Elsewhere, wheat for May delivery traded at USD7.2900 a bushel, down 0.1% on the day. The May contract held in a tight range between USD7.2712 a bushel and a session high of USD7.3012 a bushel.

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.

CBOT wheat prices rose to a five-week high of USD7.3662 a bushel on March 21, amid indications of increasing demand for U.S. supplies from global importers.

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