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Grain futures lower; U.S. corn extends losses on crop outlook

Published 06/25/2014, 07:48 AM
U.S. corn prices extend losses on bumper crop outlook
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Investing.com - U.S. corn futures extended losses from the previous session to on Wednesday, amid ongoing expectations for a record U.S. corn crop.

On the Chicago Mercantile Exchange, U.S. corn for September delivery hit a daily low of $4.3400 a bushel, before paring losses to last trade at $4.3413 during U.S. morning hours, down 0.48%, or 2.08 cents.

The September corn contract fell to $4.3320 a bushel on Tuesday, the lowest since January 31, before coming off the lows to settle at $4.3660, down 0.51%, or 2.2 cents.

According to the U.S. Department of Agriculture, nearly 74% of the U.S. corn crop was rated “good” to “excellent” as of June 22.

Prices of the grain came under further pressure as rains across key growing regions added to expectations of a bumper U.S. corn crop. The USDA forecast a record-high U.S. corn crop of 13.935 billion bushels this season.

Meanwhile, U.S. wheat for September delivery fell to a session low of $5.7800 a bushel, the weakest level since June 17, before trimming losses to trade at $5.7813, down 0.53%, or 3.08 cents.

Wheat ended Tuesday’s session down 1.4%, or 8.2 cents, to settle at $5.8060.

Nearly 33% of the U.S. winter wheat crop was harvested as of last week, up from 16% in the preceding week and above the five-year average of 31% for this time of year.

Elsewhere on the CBOT, U.S. soybeans for August delivery tacked on 0.36%, or 4.9 cents, to trade at $13.6250 a bushel. The August contract ended Tuesday’s session down 0.57%, or 7.6 cents, to settle at $13.5760.

Approximately 62% of the U.S. soy crop was rated “good” to “excellent” as of last week, while 95% of the crop was planted.

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

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