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U.S. grains rebound from multi-year lows; corn ticks up

Published 07/16/2014, 07:52 AM
U.S. corn rebounds from four-year low
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Investing.com - U.S. grain futures rebounded on Wednesday, as investors returned to the market to seek cheap valuations after prices fell to multi-year lows on Tuesday.

On the Chicago Mercantile Exchange, U.S. corn for September delivery rose 1.12%, or 4.17 cents, to trade at $3.7838 a bushel during U.S. morning hours.

The September corn contract fell to $3.7100 a bushel on Tuesday, the weakest level since July 2010, before settling at $3.7400, down 1.97%, or 7.4 cents.

Corn prices have been under heavy selling pressure in recent weeks amid ongoing expectations for a record U.S. corn harvest.

The U.S. Department of Agriculture said earlier in the month that U.S. corn inventories at the end of August will total 1.246 billion bushels, up 8% from its forecast in June.

According to the agency, nearly 76% of the U.S. corn crop was rated “good” to “excellent” as of last week, the highest rating for this time of year since 1994.

Meanwhile, U.S. soybeans for August delivery picked up 0.59%, or 6.92 cents, to trade at $11.8813 a bushel.

The August soybean contract slumped to $11.5320 on Tuesday, the lowest since October 2010, before ending the day at $11.8040, down 1.38%, or 16.4 cents.

Prices of the oilseed have been on a downward trend in recent weeks as indications of ample global supplies drove futures lower.

The USDA raised its forecast for the U.S. soybean harvest by 4.5% to a record 3.8 billion bushels last week. The agency also increased its forecast for soybean inventories by 12% to 140 million bushels.

According to the agency, approximately 72% of the U.S. soy crop was rated “good” to “excellent” as of last week, the best condition for mid-July in 20 years.

Elsewhere on the CBOT, U.S. wheat for September delivery tacked on 0.37%, or 1.98 cents, to trade at $5.4038 a bushel. The September wheat contract ended Tuesday’s session little changed to settle at $5.3760.

Prices of the grain fell to a four-year low of $5.2420 on July 14 after the USDA last week raised its outlook for global inventories at the end of the 2014-15 season to 189.54 million metric tons from the 188.61 million tons forecast last month.

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

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