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Grain futures hold steady ahead of USDA supply report

Published 07/10/2013, 06:07 AM
Investing.com - U.S. grain futures were little changed in rangebound trade on Wednesday, as traders looked ahead to a highly-anticipated U.S. Department of Agriculture report on U.S. and global grain supplies on Thursday.

Market players also monitored weather conditions across grain-growing regions in the U.S. Midwest and in the Great Plains.

On the Chicago Mercantile Exchange, corn futures for September delivery traded at USD5.5425 a bushel, up 0.5% on the day.

The September contract rose by as much as 0.6% earlier in the day to hit a session high of USD5.5463 a bushel, the strongest level since June 28.

Market analysts expect the USDA to cut its corn harvest prediction to 13.983 billion bushels in the current market season, down from the 14.005 billion bushels estimated last month.

Meanwhile, soybeans futures for August delivery traded at USD14.6913 a bushel, little changed on the day. The August contract held in a range between USD14.6238 a bushel, the daily low and a session high of USD14.7150 a bushel.

Soybean prices have been well-supported in recent sessions amid uncertainty over crop weather in the U.S. farm belt and amid fears over tight domestic supplies.

Elsewhere on the CBOT, wheat for September delivery traded at USD6.7788 a bushel, up 0.1% on the day. The September contract traded in a range between USD6.7163 a bushel, the daily low and a session high of USD6.7950 a bushel.

Wheat prices remained supported amid ongoing expectations of increased demand for U.S. supplies.

The USDA said earlier in the week that China purchased 840,000 metric tons of soft red winter wheat for delivery during the 2013-14 marketing year.

The Asian nation bought 480,000 tons of U.S. wheat last week.

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

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