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Grains mostly lower with global crop prospects in focus

Published 10/22/2013, 06:08 AM
Investing.com - U.S. grain futures were mostly lower on Tuesday, as market players continued to monitor crop prospects in the U.S., South America and the Black Sea-region.

On the Chicago Mercantile Exchange, soybeans futures for November delivery traded at USD12.9363 a bushel, down 0.7%.

Prices of the oilseed held in a range between USD12.9238 a bushel, the daily low and a session high of USD13.0138 a bushel.

The November soy contract ended 0.93% higher at USD13.0320 a bushel on Monday, the highest close since October 8.

In its first crop progress report since the government shutdown began on October 1, the U.S. Department of Agriculture said Monday that approximately 63% of the U.S. soy harvest was completed as of October 20. The five-year average for this time of year is 69%.

Prices of the oilseed came under additional pressure as favorable weather conditions in major soy-growing regions in Brazil boosted the outlook for a record crop in the South American country.

Meanwhile, corn futures for December delivery traded at USD4.4413 a bushel, little changed. Corn prices traded in a range between USD4.4288 a bushel, the daily low and a session high of USD4.4438 a bushel.

The December corn contract settled 0.57% higher on Monday to end at USD4.4400 a bushel.

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

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.

Elsewhere on the CBOT, wheat for December delivery traded at USD6.9663 a bushel, down 0.35%. Wheat prices held in a range between USD6.9613 a bushel, the daily low and a session high of USD6.9913 a bushel.

The December contract rallied to a four-and-a-half-month high of USD7.1120 a bushel on Monday before turning lower to end at USD6.9960, down 0.85%.

Wheat prices have been well-supported in recent sessions as concerns over crop prospects in Argentina and countries in the former Soviet Union fuelled expectations demand for U.S. supplies 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.

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

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