Investing.com - U.S. grain futures were higher during European morning trade on Tuesday, with corn, wheat and soy prices all rebounding from the previous session’s multi-week lows on the back of improving market sentiment.
Agricultural commodities have been under pressure in recent sessions, as investors cut their exposure to growth-linked assets amid growing concerns over a potential Greek exit from the euro zone.
But prices recovered slightly on Tuesday, moving off multi-week lows, as sentiment improved after better-than-expected euro zone and German economic growth data.
But prices remain vulnerable to the downside, as investors remained cautious ahead of a fresh round of Greek cross party talks aimed at forming a government later in the day, after a more than week-long political stalemate.
On the Chicago Mercantile Exchange, soybeans futures for July delivery traded at USD14.0275 a bushel during European morning trade, jumping 1.1%. It earlier rose by as much as 1.5% to trade at a session high of USD14.0588 a bushel.
Prices touched USD13.7612 a bushel on Monday, the lowest since March 30.
Soy prices have been under heavy selling pressure over the past week as investors continued to liquidate long positions to lock in gains from an impressive rally that took prices to a four-year high of USD15.1237 a bushel on May 2.
Soybean prices rallied nearly 19% since the beginning of February, and rose almost 6.5% in April, as market sentiment has been dominated by concerns over distressed crops in major South American soy growers and amid indications demand for U.S. soy from top consumer China remains strong.
However, prices are down more than 8% in the past nine sessions, with market analysts expecting an ever deeper drop heading into the summer, as the soy harvest in South America nears completion and higher prices eventually reducing the amount of Chinese purchases.
Soy traders shrugged off planting data from the U.S. Department of Agriculture, showing that nearly 46% of the U.S. soy crop was planted as of May 13, above the five-year average of 24% for this time of year.
Meanwhile, corn futures for July delivery traded at USD5.8763 a bushel, climbing 0.75%. It earlier rose by as much as 1.25% to trade at a session high of USD5.8888 a bushel.
Prices fell to USD5.7237 a bushel on May 11, the lowest since October 2, 2011.
Corn prices have been on the decline since the USDA unexpectedly raised its forecast for near-term supplies of the grain and projected a record harvest in the autumn last week.
But speculation that lower prices would encourage China to boost purchases of U.S. corn lent support.
Demand for corn has been strong after a recent dip in prices. China’s state-owned grain-stockpiling agency, Sinograin, said last month that it was ready boost purchases to replenish depleted reserves if the prices are attractive.
Corn’s gains came despite a report from the U.S. Department of Agriculture showing that approximately 87% of the corn crop was planted as of last week, up from 71% a week earlier and higher than the five-year average of 66% for this time of year.
The U.S. produced 38% of the world's corn last year, making it the both world's largest corn producing nation and the largest exporter of the grain, while China is the world’s largest consumer of the grain.
Elsewhere on the Chicago Board of Trade, wheat for July delivery traded at USD6.0463 a bushel, climbing 1.1%. It earlier rose by as much as 1.25% to trade at a three-day high of USD6.0563 a bushel.
Prices touched USD5.9237 on Monday, the lowest since January 19.
Wheat prices regained strength as upward momentum spilled over from the corn and soy markets.
The USDA’s weekly crop progress report published after markets closed Monday showed that 60% of the U.S. winter wheat crop was rated ‘good’ to ‘excellent’ as of last week, down 3% from a week earlier.
14% of the crop was in ‘poor’ to ‘very poor’ condition, compared to 12% a week earlier.
The report also showed that 94% of the spring wheat crop was already planted, up from 84% a week earlier.
Corn is the biggest U.S. crop, valued at USD66.7 billion in 2010, followed by soybeans at USD38.9 billion, government figures show. Wheat was fourth at USD13 billion, behind hay.
Agricultural commodities have been under pressure in recent sessions, as investors cut their exposure to growth-linked assets amid growing concerns over a potential Greek exit from the euro zone.
But prices recovered slightly on Tuesday, moving off multi-week lows, as sentiment improved after better-than-expected euro zone and German economic growth data.
But prices remain vulnerable to the downside, as investors remained cautious ahead of a fresh round of Greek cross party talks aimed at forming a government later in the day, after a more than week-long political stalemate.
On the Chicago Mercantile Exchange, soybeans futures for July delivery traded at USD14.0275 a bushel during European morning trade, jumping 1.1%. It earlier rose by as much as 1.5% to trade at a session high of USD14.0588 a bushel.
Prices touched USD13.7612 a bushel on Monday, the lowest since March 30.
Soy prices have been under heavy selling pressure over the past week as investors continued to liquidate long positions to lock in gains from an impressive rally that took prices to a four-year high of USD15.1237 a bushel on May 2.
Soybean prices rallied nearly 19% since the beginning of February, and rose almost 6.5% in April, as market sentiment has been dominated by concerns over distressed crops in major South American soy growers and amid indications demand for U.S. soy from top consumer China remains strong.
However, prices are down more than 8% in the past nine sessions, with market analysts expecting an ever deeper drop heading into the summer, as the soy harvest in South America nears completion and higher prices eventually reducing the amount of Chinese purchases.
Soy traders shrugged off planting data from the U.S. Department of Agriculture, showing that nearly 46% of the U.S. soy crop was planted as of May 13, above the five-year average of 24% for this time of year.
Meanwhile, corn futures for July delivery traded at USD5.8763 a bushel, climbing 0.75%. It earlier rose by as much as 1.25% to trade at a session high of USD5.8888 a bushel.
Prices fell to USD5.7237 a bushel on May 11, the lowest since October 2, 2011.
Corn prices have been on the decline since the USDA unexpectedly raised its forecast for near-term supplies of the grain and projected a record harvest in the autumn last week.
But speculation that lower prices would encourage China to boost purchases of U.S. corn lent support.
Demand for corn has been strong after a recent dip in prices. China’s state-owned grain-stockpiling agency, Sinograin, said last month that it was ready boost purchases to replenish depleted reserves if the prices are attractive.
Corn’s gains came despite a report from the U.S. Department of Agriculture showing that approximately 87% of the corn crop was planted as of last week, up from 71% a week earlier and higher than the five-year average of 66% for this time of year.
The U.S. produced 38% of the world's corn last year, making it the both world's largest corn producing nation and the largest exporter of the grain, while China is the world’s largest consumer of the grain.
Elsewhere on the Chicago Board of Trade, wheat for July delivery traded at USD6.0463 a bushel, climbing 1.1%. It earlier rose by as much as 1.25% to trade at a three-day high of USD6.0563 a bushel.
Prices touched USD5.9237 on Monday, the lowest since January 19.
Wheat prices regained strength as upward momentum spilled over from the corn and soy markets.
The USDA’s weekly crop progress report published after markets closed Monday showed that 60% of the U.S. winter wheat crop was rated ‘good’ to ‘excellent’ as of last week, down 3% from a week earlier.
14% of the crop was in ‘poor’ to ‘very poor’ condition, compared to 12% a week earlier.
The report also showed that 94% of the spring wheat crop was already planted, up from 84% a week earlier.
Corn is the biggest U.S. crop, valued at USD66.7 billion in 2010, followed by soybeans at USD38.9 billion, government figures show. Wheat was fourth at USD13 billion, behind hay.