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Grain futures rebound; U.S. corn, wheat bounce off 4-month lows

Published 06/18/2014, 06:30 AM
U.S. corn bounces off 4-month low on bargain buying
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Investing.com - U.S. corn and wheat futures bounced off four-month lows struck in the previous session on Wednesday, as investors returned to the market to seek cheap valuations.

On the Chicago Mercantile Exchange, U.S. corn for July delivery rose 0.58%, or 2.52 cents, to trade at 4.4113 a bushel during U.S. morning hours.

The July corn contract slumped to a session low of $4.3540 a bushel on Tuesday, the weakest level since February 4, before trimming losses to settle at $4.3860, down 0.51%, or 2.2 cents.

Corn prices have been under heavy selling pressure in recent weeks amid growing optimism over the health of the U.S. corn crop.

According to the U.S. Department of Agriculture, nearly 76% of the U.S. corn crop was rated “good” to “excellent” as of last week, the best mid-June rating for the crop since 1994.

Elsewhere on the CBOT, U.S. wheat for July delivery tacked on 0.97%, or 5.67 cents, to trade at $5.8788 a bushel. Wheat prices hit $5.7660 on Tuesday, the lowest since February 10, before settling at $5.8160, up 0.13%, or 0.6 cents.

Wheat prices have been on a downward trend recently as market players liquidated long positions amid easing concerns over tightening supplies.

Meanwhile, U.S. soybeans for July delivery fell to a daily low of $13.9340 a bushel earlier in the session, the weakest level since March 18, before turning higher to trade at $14.0688, up 0.66%, or 9.28 cents.

The July soybean contract tumbled 1.65%, or 23.4 cents, on Tuesday to settle at $13.9820, as indications of ample global supplies and weak demand weighed.

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

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