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U.S. grains rebound; corn bounces off 4-year low

Published 07/10/2014, 08:01 AM
U.S. corn bounces off 4-year low
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Investing.com - U.S. corn futures regained strength on Thursday, as investors returned to the market to seek cheap valuations after prices fell to the lowest level in four years.

On the Chicago Mercantile Exchange, U.S. corn for September delivery fell to a session low of $3.8800 a bushel, the weakest level since August 2010, before turning higher to last trade at $3.9338 during U.S. morning hours, up 0.61%, or 2.38 cents.

The September corn contract lost 1.76%, or 7.0 cents, on Wednesday to end at $3.9120 a bushel as expectations for a record U.S. corn harvest continued to weigh.

Prices of the grain have been under heavy selling pressure in recent sessions after the U.S. Department of Agriculture reported on June 30 that domestic corn stockpiles totaled 3.854 billion bushels on June 1, 39% higher than the year-earlier level.

Meanwhile, U.S. soybeans for August delivery tacked on 0.87%, or 10.85 cents, to trade at $12.5725 a bushel.

The August soybean contract hit $12.3120 a bushel on Wednesday, the lowest since August 9, before coming off the lows to settle at $12.4640, down 0.16%, or 2.0 cents.

Soybean prices have been on a downward trend after the USDA projected U.S. soybean seedings at a record-high 84.8 million acres, up from a prior forecast for about 81.49 million acres.

Elsewhere on the CBOT, U.S. wheat for September delivery inched up 0.73%, or 4.0 cents, to trade at $5.5463 a bushel.

The September wheat contract fell to $5.4760 on Wednesday, the cheapest since January 31, before settling at $5.5120, down 0.9%, or 5.0 cents.

Expectations for ample global supplies continued to weigh after the USDA said U.S. farmers planted approximately 56.47 million acres with the grain, up from a prior estimate of 55.815 million.

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

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