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Grain futures rise; Wheat re-approaches 4-month high

Published 10/23/2013, 06:13 AM
Investing.com - U.S. grain futures were higher on Wednesday, with wheat prices re-approaching a four-and-a-half-month high as concerns over crop prospects in Argentina and the Black Sea-region fuelled expectations of increased demand for U.S. supplies.

On the Chicago Mercantile Exchange, wheat for December delivery traded at USD7.0563 a bushel, up 0.7%. Wheat prices traded in a range between USD6.9975 a bushel, the daily low and a session high of USD7.0688 a bushel.

The December contract settled 0.14% higher on Tuesday to end at USD7.0060 a bushel. Prices rallied to a four-and-a-half-month high of USD7.1120 a bushel on October 21.

Market players continued to monitor deteriorating crop prospects in Argentina and in Russia.

Unfavorable crop prospects in these countries could mean increased demand for U.S. supplies, which is the world’s third largest wheat producer and biggest exporter.

Meanwhile, soybeans futures for November delivery traded at USD13.04613 a bushel, up 0.15%. Prices of the oilseed held in a range between USD12.9688 a bushel, the daily low and a session high of USD13.0438 a bushel.

The November soy contract ended 0.08% lower at USD13.0220 a bushel on Tuesday.

According to the U.S. Department of Agriculture, approximately 63% of the U.S. soy harvest was completed as of last week. The five-year average for this time of year is 69%.

Elsewhere on the CBOT, corn futures for December delivery traded at USD4.4163 a bushel, 0.7% higher. Corn prices traded in a range between USD4.3763 a bushel, the daily low and a session high of USD4.4213 a bushel.

The December corn contract settled down 1.3% on Tuesday to end at USD4.3820 a bushel.

Futures have been on a downward trend in recent weeks amid expectations this year’s corn harvest in the U.S. will be the largest on record.

Prices of the grain slumped to USD4.3200 a bushel on October 14, the weakest level since August 30, 2010.

The USDA said that nearly 39% of the corn harvest was completed as of last week, roughly in line with market expectations. The agency also said that approximately 60% of the corn crop was rated in ‘good’ to ‘excellent’ condition.

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

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