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U.S. grain futures under pressure before USDA report

Published 03/10/2015, 07:12 AM
© Reuters.  U.S. wheat futures fall 1% ahead of USDA monthly report
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Investing.com - U.S. wheat futures fell for the first time in three sessions on Tuesday, as investors looked ahead to the U.S. Department of Agriculture’s closely-watched monthly crop supply and demand report due later in the session.

On the Chicago Mercantile Exchange, US wheat for May delivery declined 5.33 cents, or 1.09%, to trade at $4.8488 a bushel during U.S. morning hours.

Market analysts expect the agency to raise its estimate for 2014-15 wheat ending stocks to 699 million bushels, up from a forecast of 692 million bushels in February.

A day earlier, wheat rallied 7.4 cents, or 1.55%, to settle at $4.9000 a bushel as traders returned to the market to seek cheap valuations in wake of recent losses.

Wheat for May delivery touched a contract-low of $4.7840 on March 6 as concerns over ample global supplies and indications of reduced demand for U.S. wheat weighed.

Meanwhile, US corn for May delivery inched down 1.62 cents, or 0.42%, to trade at $3.8738 a bushel, as weakness in wheat spilled over. Wheat and corn prices are linked because both can be used as animal feed.

US corn for May delivery tacked on 2.6 cents, or 0.71%, on Monday to end at $3.8860.

Elsewhere on the Chicago Board of Trade, US soybeans for May delivery shed 4.28 cents, or 0.43%, to trade at $9.8813 a bushel amid easing concerns over Brazilian export prospects.

Brazil is a major soybean exporter and competes with the U.S. for business on the global market, which could weigh on demand for U.S. supplies.

On Monday, US soybeans for May delivery rose 8.2 cents, or 0.84%, to close at $9.9320 a bushel.

Market participants expect the USDA to cut its forecast for U.S. soybean ending stocks to 376 million bushels, down from last month's estimate of 385 million bushels.

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

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