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Grain futures higher for 2nd day; Soy, wheat gain on export demand

Published 10/30/2013, 07:17 AM
Investing.com - U.S. grain futures were higher on Wednesday, with soy and wheat prices advancing amid indications of increasing demand for U.S. supplies.

On the Chicago Mercantile Exchange, soybeans futures for January delivery traded at USD12.7713 a bushel, up 0.5%. Prices of the oilseed traded in a range between USD12.7075 a bushel, the daily low and a session high of USD12.7913 a bushel earlier.

The January soy contract ended 0.22% higher at USD12.7060 a bushel on Tuesday.

The U.S. Department of Agriculture said on Monday that U.S. farmers shipped 83.6 million bushels of soybeans last week, the second-highest amount on record.  

Meanwhile, wheat for December delivery traded at USD6.8438 a bushel, 0.45% higher. Wheat prices held in a range between USD6.8263 a bushel, the session low and a daily high of USD6.8600 a bushel.

The December contract fell to USD6.7620 a bushel on Tuesday, the weakest level since October 1, before turning higher to settle at USD6.8120 a bushel, up 0.04% on the day.

Market players continued to monitor crop prospects and weather conditions in the U.S., South America and countries in the Black Sea-region.

Wheat prices have been well-supported in recent weeks as concerns over global crop prospects fuelled expectations demand for U.S. supplies will increase in the near-term.

Brazil is on pace to buy the most wheat from the U.S. in at least 20 years, while China has booked orders for nearly four times as much as it purchased last year.

Elsewhere on the CBOT, corn futures for December delivery traded at USD4.3388 a bushel, up 0.4%. Corn prices traded in a range between USD4.3138 a bushel, the daily low and a session high of USD4.3400 a bushel.

The December corn contract dropped to USD4.2820 a bushel on Tuesday, the weakest level since August 26, 2010, before settling at USD4.3200 a bushel, up 0.29%.

Corn prices have been on a downward trend in recent weeks amid expectations this year’s corn harvest in the U.S. will be the largest on record.

According to the USDA, nearly 59% of the corn harvest was completed as of October 27, up from the 39% harvested a week earlier.

The agency said that approximately 62% of the corn crop was rated in ‘good’ to ‘excellent’ condition, improving from 60% in the preceding week.

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

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