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Corn futures fall to 1-week low on rapid U.S. planting progress

Published 04/22/2015, 05:50 AM
© Reuters.  Corn hits 1-week low on U.S. planting progress
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Investing.com - U.S. corn futures fell for the third consecutive session on Wednesday, amid indications of rapid planting progress in the U.S. Midwest last week.

On the Chicago Mercantile Exchange, US corn for May delivery hit a session low of $3.7100 a bushel, the weakest level since April 15, before trading at $3.7113 during U.S. morning hours, down 1.27 cents, or 0.34%. A day earlier, corn futures lost 5.0 cents, or 1.32%, to settle at $3.7300.

The U.S. Department of Agriculture said Monday that approximately 9% of the corn crop was planted as of April 19, up from just 2% in the preceding week.

Nearly 6% of the crop was planted during the same week a year earlier, while the five-year average for this time of year is 13%.

Meanwhile, US soybeans for May delivery inched down 2.52 cents, or 0.26%, to trade at $9.7188 a bushel. On Tuesday, prices of the oilseed dipped 2.2 cents, or 0.23%, to close at $9.7520.

Optimism over the outlook for supplies in South America weighed. Brazil and Argentina are major soybean 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.

Elsewhere on the Chicago Board of Trade, US wheat for May delivery tacked on 1.23 cents, or 0.24%, to trade at $5.0163 a bushel. The May wheat contract gained 2.0 cents, or 0.4%, to end at $5.0060.

The USDA said that the U.S. winter wheat crop was rated 42% good to excellent as of last week. Approximately 34% of the crop was in good to excellent condition in the same week a year earlier.

The agency also said that 36% of the spring wheat crop was planted as of last week, up from 17% in the preceding week. Only 9% of the crop was planted in the same week a year earlier, while the five-year average for this time of year is 19%.

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

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