U.S. grains decline ahead of USDA export data
Investing.com
Published May 01, 2014 06:00AM ET
U.S. wheat falls from 11-month high on profit-taking
Investing.com - U.S. grain futures declined on Thursday, as market players looked ahead to the U.S. Department of Agriculture’s weekly export report later in the session to gauge the strength of global demand for U.S. supplies.
On the Chicago Mercantile Exchange, U.S. corn for July delivery shed 0.62%, or 3.23 cents, to trade at $5.1538 a bushel during U.S. morning hours.
The July contract lost 0.48%, or 2.4 cents on Wednesday to settle at $5.1900 a bushel as investors cashed out of the market to lock in gains from a recent rally which took prices to a nine-month high earlier in the week, amid mounting concerns over U.S. planting prospects.
Corn rallied to $5.2200 a bushel on April 29 after the USDA said that only 19% of the U.S. corn crop was planted as of last week. The five-year average for this time of year is 28%.
Agricultural meteorologists predicted more favorable conditions for U.S. plantings in the next few days, which should aid planting prospects.
Meanwhile, U.S. soybeans for July delivery declined 0.45%, or 6.75 cents to trade at $15.0513 a bushel. The July soybean contract fell 0.3%, or 4.4 cents, on Wednesday to settle at $15.1260 a bushel.
Soybeans have been well-supported in recent sessions amid concerns over tightening U.S. supplies due to robust export demand.
Elsewhere on the CBOT, U.S. wheat for July delivery slumped 0.5%, or 3.58 cents, to trade at $7.1863 a bushel. The July wheat contract rallied to $7.2460 a bushel on Wednesday, the most since May 9, 2013, before settling at $7.2140, up 0.7%, 5.0 cents.
Market players continued to monitor weather and crop conditions in the U.S. Great Plains region.
According to the USDA, approximately 33% of the U.S. winter wheat crop was rated “good” to “excellent” as of last week, down from 34% in the preceding week. Winter-wheat crops in “very poor” to “poor” conditions rose to 34% from 33% in the preceding week.
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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