Investing.com - U.S. grain futures were higher on Monday, with wheat prices rising to the strongest level since June as concerns over crop conditions in Argentina boosted expectations of increased demand for U.S. supplies.
On the Chicago Mercantile Exchange, wheat for December delivery traded at USD7.0938 a bushel, up 0.4%. Wheat prices rose to a session high of USD7.1113 a bushel earlier in the day, the strongest level since June 5.
The December contract settled 2.88% higher at USD7.0560 a bushel on Friday.
Wheat prices were boosted after Argentina's agriculture ministry estimated domestic wheat production at 8.8 million tonnes on Friday.
The forecast was sharply lower than the 12 million tonnes estimated by the U.S. Department of Agriculture last month.
Argentina is a major wheat exporter and competes with the U.S. for business on the global market.
Crop losses in Argentina could mean increased demand for U.S. supplies, which is the world’s third largest wheat producer and biggest exporter.
Wheat prices have been well-supported in recent weeks amid expectations demand from China and Brazil will remain robust in the near-term.
Brazil is on pace to buy the most wheat from the U.S. in at least 20 years, while China has booked orders for nearly four times as much as it purchased last year.
Meanwhile, corn futures for December delivery traded at USD4.4338 a bushel, up 0.5%. Corn prices traded in a range between USD4.4013 a bushel, the daily low and a session high of USD4.4338 a bushel.
The December corn contract settled 0.34% lower on Friday to end at USD4.4140 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 U.S. corn crop was expected to total 13.84 billion bushels this season, 28% larger than last year’s harvest and the largest crop on record.
Elsewhere on the CBOT, soybeans futures for November delivery traded at USD12.9438 a bushel, up 0.2%. Prices of the oilseed held in a range between USD12.8863 a bushel, the daily low and a session high of USD12.9663 a bushel.
The November soy contract ended down 0.15% at USD12.9120 a bushel on Friday.
Grain traders will focus on the release of key USDA data later in the week, including export sales figures and crop progress numbers, which had been delayed due to the 16-day U.S. government shutdown.
The agency said it was cancelling the release of its closely-watched monthly supply and demand report for October, which was originally scheduled for October 11.
The next USDA crop report is scheduled to be released on November 8.
Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.
On the Chicago Mercantile Exchange, wheat for December delivery traded at USD7.0938 a bushel, up 0.4%. Wheat prices rose to a session high of USD7.1113 a bushel earlier in the day, the strongest level since June 5.
The December contract settled 2.88% higher at USD7.0560 a bushel on Friday.
Wheat prices were boosted after Argentina's agriculture ministry estimated domestic wheat production at 8.8 million tonnes on Friday.
The forecast was sharply lower than the 12 million tonnes estimated by the U.S. Department of Agriculture last month.
Argentina is a major wheat exporter and competes with the U.S. for business on the global market.
Crop losses in Argentina could mean increased demand for U.S. supplies, which is the world’s third largest wheat producer and biggest exporter.
Wheat prices have been well-supported in recent weeks amid expectations demand from China and Brazil will remain robust in the near-term.
Brazil is on pace to buy the most wheat from the U.S. in at least 20 years, while China has booked orders for nearly four times as much as it purchased last year.
Meanwhile, corn futures for December delivery traded at USD4.4338 a bushel, up 0.5%. Corn prices traded in a range between USD4.4013 a bushel, the daily low and a session high of USD4.4338 a bushel.
The December corn contract settled 0.34% lower on Friday to end at USD4.4140 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 U.S. corn crop was expected to total 13.84 billion bushels this season, 28% larger than last year’s harvest and the largest crop on record.
Elsewhere on the CBOT, soybeans futures for November delivery traded at USD12.9438 a bushel, up 0.2%. Prices of the oilseed held in a range between USD12.8863 a bushel, the daily low and a session high of USD12.9663 a bushel.
The November soy contract ended down 0.15% at USD12.9120 a bushel on Friday.
Grain traders will focus on the release of key USDA data later in the week, including export sales figures and crop progress numbers, which had been delayed due to the 16-day U.S. government shutdown.
The agency said it was cancelling the release of its closely-watched monthly supply and demand report for October, which was originally scheduled for October 11.
The next USDA crop report is scheduled to be released on November 8.
Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.