U.S. grain prices rise despite planting progress, ideal crop weather

Investing.com - U.S. grain futures edged higher on Tuesday, with wheat prices extending strong gains from the previous session as investors continued to close out bets on lower prices.

On the Chicago Mercantile Exchange, US wheat for July delivery tacked on 4.28 cents, or 0.87%, to trade at $4.9788 a bushel during U.S. morning hours.

A day earlier, prices slumped to $4.7400, the weakest level since May 13, before rallying sharply to settle at $4.9360, up 16.6 cents, or 3.51%.

The U.S. Department of Agriculture said Monday that 44% of the U.S. winter-wheat crop was rated good to excellent as of May 31, down from 45% in the preceding week.

The agency also said that nearly 71% of the spring-wheat crop was in good to excellent condition as of last week, up from 70% in the preceding week, while 91% of the crop emerged, improving from 80% a week earlier.

Forecasts for drier, warmer weather in the southern Great-Plains region in recent days had boosted speculation over improving crop conditions.

Meanwhile, US corn for July delivery inched up 2.48 cents, or 0.7%, to trade at $3.5488 a bushel. On Monday, corn prices fell to $3.4820, a level not seen since October 21, before ending at $3.5220, up 0.6 cents, or 0.21%.

According to the USDA, approximately 95% of the corn crop was planted as of May 31, up from 92% in the preceding week. Nearly 94% of the crop was planted during the same week a year earlier, while the five-year average for this time of year is 94%.

Corn emergence rose to 84% last week from 74% a week earlier, above the five-year average of 79%.

Elsewhere on the Chicago Board of Trade, US soybeans for July delivery advanced 6.93 cents, or 0.75%, to trade at $9.3313 a bushel. Prices of the oilseed hit $9.2140 on Monday, the lowest since May 26, before closing at $9.2600, down 8.0 cents, or 0.86%.

Nearly 71% of the soybean crop was planted as of May 31, according to the USDA, up from 61% in the preceding week. Approximately 75% of the crop was planted in the same week a year earlier, while the five-year average for this time of year is 70%.

Soybean emergence was 49% complete, improving from 32% a week earlier, while the five-year average pace for the week is 45%.

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