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Grain futures lower on profit taking; wheat comes off 3-week high

Published 02/05/2014, 06:03 AM
Wheat futures fall from 3-week high on profit taking

Investing.com - U.S. grain futures were lower on Wednesday, with wheat prices easing off the previous session’s three-week high as investors locked in gains.

On the Chicago Mercantile Exchange, wheat for March delivery traded at USD5.7963 a bushel, down 0.8%. Wheat prices held in a range between USD5.7938 a bushel and USD5.8475 a bushel.

The March wheat contract rallied to USD5.8560 a bushel on Tuesday, the highest since January 10, before trimming gains to settle at USD5.8440 a bushel, up 3.68%.

Wheat prices soared by the most in nearly ten months on Tuesday amid concerns freezing temperatures in key wheat-growing states in the U.S. will damage the quality of the harvest.

The U.S. Department of Agriculture said Monday that approximately 35% of winter wheat in Kansas was rated ‘good’ to ‘excellent’, down from 58% at the end of December. The amount rated ‘poor’ to ‘very poor’ rose to 20% from 6% a month earlier.

Kansas is the largest wheat-producing state in the U.S.

Elsewhere on the CBOT, corn futures for March delivery traded at USD4.3938 a bushel, down 0.5%.

CBOT March corn hit USD4.4200 a bushel on Tuesday, the strongest since October 24, before paring gains to settle at USD4.4160, up 1.38%.

Corn prices have been well-supported in recent sessions amid indications of robust export demand for U.S. supplies.

Meanwhile, soybeans futures for March delivery inched down 0.1% to trade at USD13.1275 a bushel. Prices of the oilseed rose to a daily high of USD13.1988 a bushel, the most since January 16.

The March soy contract rallied 1.38% on Tuesday to settle at USD13.1320 a bushel amid speculation adverse weather conditions in Brazil will damage the quality of the crop and reduce global supplies.

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

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