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Grains mixed; Corn, soybeans under pressure on ideal U.S. weather

Published 08/01/2013, 06:09 AM
Investing.com - U.S. grain futures were mixed on Thursday, with corn and soybean prices coming under pressure as investors continued to focus on improving U.S. weather and crop prospects in the U.S. Midwest and Great Plains-region.

On the Chicago Mercantile Exchange, corn futures for September delivery traded at USD4.9750 a bushel, down 0.35%.

Weather forecasting models pointed to ideal temperatures across most parts of the U.S. Midwest during the next few days, easing concerns over potential crop damage.

The U.S. Department of Agriculture said on Monday that 63% of the U.S. corn crop was rated in ‘good’ to ‘excellent’ condition as of last week. Only 24% of the corn crop was in ‘good’ to ‘excellent’ condition in the same week a year earlier.

The September corn contract settled up 0.7% at USD4.9900 a bushel on Wednesday, as investors returned to the market to seek cheap valuations.

Prices of the grain fell to USD4.8837 a bushel on July 29, the weakest level since October 2010.

Meanwhile, soybeans futures for September delivery traded at USD12.4838 a bushel, down 0.1%.

Soybean prices fell to USD12.3750 a bushel on Wednesday, the lowest level since February 13, 2012, as forecasts of near-perfect growing weather across the U.S. grain belt boosted supply prospects.

According to the USDA, approximately 65% of the U.S. soy crop bloomed as of last week, up from 46% in the preceding week.

Elsewhere on the CBOT, wheat for September delivery traded at USD6.6488 a bushel, little changed. Wheat prices rose to a two-week high of USD6.6737 a bushel earlier in the session.

The September contract settled up 1.4% at USD6.6420 a bushel on Wednesday, amid indications of improving 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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