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U.S. grains rebound from 4-year lows on bargain buying

Published 09/16/2014, 06:50 AM
U.S. wheat futures rise from than 4-year low on bargain buying
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Investing.com - U.S. grain futures regained strength on Tuesday, as investors returned to the market to seek cheap valuations after prices fell to four-year lows in the previous session.

On the Chicago Mercantile Exchange, U.S. wheat for December delivery tacked on 6.42 cents, or 1.28%, to trade at $5.0763 a bushel during U.S. morning hours.

A day earlier, wheat prices hit $4.9600 a bushel, the weakest level since July 2010, before settling at $5.0060, down 1.6 cents, or 0.35% as concerns over weak demand and plentiful global supplies weighed.

The U.S. Department of Agriculture said on September 11 that U.S. ending stocks were forecast at 698 million bushels, up from a previous estimate of 663 million, due in large part to weak export demand for U.S. supplies.

According to the agency, global wheat inventories at the end of the 2014-15 season will total 196.38 million metric tons, up from 192.96 projected in August.

Meanwhile, U.S. corn for December delivery rallied 6.17 cents, or 1.8%, to trade at $3.4938 a bushel.

Futures sank to $3.3560 a bushel on Monday, a level not seen since June 2010, before ending at $3.4300, up 4.4 cents, or 1.33%.

The USDA estimated last week that the U.S. corn harvest will hit a record-high 14.39 billion bushels, up from a projection of 14.03 billion in August.

Global ending stocks were forecast to exceed 2 billion bushels for the first time in a decade.

Elsewhere on the CBOT, U.S. soybeans for November delivery inched up 7.88 cents, or 0.8%, to trade at $9.9788 a bushel.

A day earlier, the November soybean contract rose 4.2 cents, or 0.43%, to close at $9.8940 a bushel.

Prices of the oilseed slumped to a four-year low of $9.6940 on September 11 after the USDA estimated this fall's U.S. harvest would reach an all-time high of 3.913 billion bushels.

Soybean ending stocks will more than triple in the 2014-15 marketing season to 475 million bushels, the highest since the 2006-07 season.

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

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