Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Grain futures edge modestly lower in quiet trade

Published 03/26/2014, 07:22 AM
Grains slightly lower in subdued trade
ZS
-
ZW
-
ZC
-

Investing.com - U.S. grain futures edged modestly lower in subdued trade on Wednesday, as market players continued to monitor weather conditions in the U.S. and South America to gauge the health of global crop prospects.

On the Chicago Mercantile Exchange, U.S. wheat for May delivery declined 0.26%, or 1.9 cents, to trade at $7.0713 a bushel during U.S. morning hours.

The May wheat contract fell 0.87%, or 6.2 cents, on Tuesday to settle at $7.0820 a bushel, as investors booked gains from a recent rally which was sparked by mounting concerns over the health of the U.S. winter-wheat crop.

Prices of the grain surged to an 11-month peak of $7.2340 a bushel on March 20. Futures have risen nearly 15% in March.

According to the U.S. Department of Agriculture, approximately 33% of the Kansas wheat crop was rated in good to excellent condition as of last week, down from 34% a week earlier, as dry and cold temperatures damaged crops.

Nearly 21% of the crop was poor to very poor conditions, compared with 20% a week earlier. Kansas is the largest wheat producing state in the U.S.

Elsewhere on the CBOT, U.S. corn futures for May delivery slumped 0.23%, or 1.1 cents, to trade at $4.8588 a bushel. The May corn contract shed 0.71%, or 3.4 cents, on Tuesday to settle at $4.8640 a bushel.

Corn prices weakened following China's cancellation of 21,800 tonnes of U.S. shipments earlier in the week after detecting an unapproved genetically-modified strain.

The Asian nation has turned away approximately 908,800 tonnes of U.S. corn since November.

Meanwhile, U.S. soybeans futures for May delivery dipped 0.18%, or 2.6 cents, to trade at $14.2563 a bushel. The May soybean contract rose 0.18%, or 2.4 cents, on Tuesday to settle at $14.2800 a bushel.

Soybeans prices remained supported amid indications of strong export demand for U.S. supplies.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.