Corn futures trade near 6-month low on U.S. planting progress

Investing.com - U.S. corn futures traded near the lowest level in almost six months on Wednesday, amid indications of rapid planting progress in the U.S. Midwest last week.

On the Chicago Mercantile Exchange, US corn for July delivery inched up 0.78 cents, or 0.21%, to trade at $3.6438 a bushel during U.S. morning hours.

A day earlier, corn fell to $3.6240, the weakest level since November 5, before ending at $3.6440, down 0.2 cents, or 0.07%.

According to the U.S. Department of Agriculture, approximately 19% of the corn crop was planted as of April 26, up from just 9% in the preceding week.

Nearly 17% of the crop was planted during the same week a year earlier, while the five-year average for this time of year is 25%.

Meanwhile, US wheat for July delivery tacked on 0.62 cents, or 0.13%, to trade at $4.7662 a bushel. On Tuesday, wheat slumped to $4.6400, a contract low, before closing at $4.7620, up 3.0 cents, or 0.63%.

The USDA said that 55% of the spring wheat crop was planted as of last week, up from 36% a week earlier. Only 17% of the crop was planted in the same week a year earlier, while the five-year average for this time of year is 29%.

The agency also said that the U.S. winter wheat crop was rated 42% good to excellent as of last week. Approximately 33% of the crop was in good to excellent condition in the same week a year earlier.

Elsewhere on the Chicago Board of Trade, US soybeans for July delivery inched down 3.83 cents, or 0.39%, to trade at $9.7338 a bushel. Prices of the oilseed jumped to $9.8800 on Tuesday, the most since April 6, before settling at $9.7720, up 4.2 cents, or 0.44%.

According to the USDA, only 2% of the soybean crop was planted as of last week, compared to the 3% planted in the same week a year earlier. The five-year average for this time of year is 4%.

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.

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