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Grain futures mildly higher with U.S. crop conditions in focus

Published 05/02/2013, 05:54 AM
Investing.com - U.S. grain futures were modestly higher on Thursday, rebounding from the previous session's losses as market players continued to monitor crop conditions in the U.S.

On the Chicago Mercantile Exchange, wheat for May delivery traded at USD7.1200 a bushel, up 0.3% on the day. The May contract rose by as much as 0.8% earlier in the day to hit a session high of USD7.1600 a bushel.

The more actively traded July wheat contract eased up 0.1% to trade at USD7.2238 a bushel.

Wheat prices came under pressure on Wednesday after forecasts pointed to beneficial weather in key U.S wheat-growing states, which could aid the winter-wheat crop.

According to the U.S. Department of Agriculture, approximately 33% of the U.S. winter wheat crop was rated “good” to “excellent” as of last week, significantly below the 64% recorded in the same week a year earlier.

Winter-wheat crops in “very poor” to “poor” conditions rose to 35% from 33% in the preceding week.

Meanwhile, corn futures for May delivery traded at USD6.860 a bushel, up 1% on the day. The front-month contract rose by as much as 1.1% earlier in the day to hit a session high of USD6.8675 a bushel.

The more actively traded July contract rose 0.5% to trade at USD6.5050 a bushel. CBOT corn prices rose to a five-week high of USD6.6887 a bushel on April 30 amid mounting concerns over U.S. planting prospects.

The USDA said that only 5% of the U.S. corn crop was planted as of last week, matching the slowest pace since 1984.

Nearly 49% of the corn crop was planted in the same week a year earlier, while the five-year average for this time of year is 31%.

Elsewhere on the CBOT, soybeans futures for May delivery traded at USD14.4350 a bushel, up 0.5% on the day. The May contract rose by as much as 0.6% earlier in the session to hit a daily low of USD14.4425 a bushel.

The more actively traded July soybean contract added 0.5% to trade at USD13.8012 a bushel.

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

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