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U.S. grain futures bounce off multi-month lows on bargain-buying

Published 02/03/2015, 06:17 AM
U.S. wheat futures bounce off 4-month low
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Investing.com - U.S. wheat futures rose for the first time in three sessions on Tuesday, as investors returned to the market to seek cheap valuations after prices fell to four-month lows.

On the Chicago Mercantile Exchange, US wheat for March delivery traded at $4.9763 a bushel during U.S. morning hours, up 5.03 cents, or 1.02%, after hitting a session high of $4.9840.

A day earlier, wheat fell to $4.9220, the lowest level since October 10, before settling at $4.9260, down 10.0 cents, or 1.99%.

The March wheat contract lost 26.0 cents, or 4.91%, last week, the sixth straight weekly decline. Prices of the grain plunged 86.13 cents, or 14.69%, in January amid ample global supplies and indications of reduced demand for U.S. wheat.

Wheat is down almost 26% lower than a recent peak of $6.7687 hit on December 18, meeting the definition of a bear market.

Meanwhile, US corn for March delivery tacked on 4.28 cents, or 1.16%, to trade at $3.7388 a bushel.

On Monday, US corn for March delivery dipped 0.2 cents, or 0.07%, to close at $3.6960. Prices touched $3.6560 last Friday, the weakest level since November 20.

The March corn contract sank 16.0 cents, or 4.14%, last week. Corn plunged 24.76 cents, or 6.7%, in January as reduced demand for corn-based ethanol and ample supplies in the U.S. weighed.

Elsewhere on the Chicago Board of Trade, US soybeans for March delivery inched up 8.53 cents, or 0.89%, to trade at $9.6813 a bushel.

The March soybean fell 1.4 cents, or 0.16%, to end at $9.5940. Prices of the oilseed hit $9.5500 last Friday, a level not seen since October 21.

The March soybean contract declined 10.75 cents, or 1.11%, last week, the third consecutive weekly loss.

Prices of the oilseed lost 5.99% in January amid concerns over weakening demand from China and as optimism over crop prospects in Brazil and Argentina underlined worries over ample global supplies.

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

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