U.S. soybean futures rally to 5-week high on crop, planting concerns

Investing.com - U.S. soybean futures extended strong gains from the previous session on Wednesday to hit a five-week high amid growing concerns over crop conditions.

On the Chicago Mercantile Exchange, US soybeans for July delivery hit an intraday peak of $9.6863 a bushel, a level not seen since May 12, before trading at $9.6840 during U.S. morning hours, up 11.0 cents, or 1.15%. A day earlier, soybean prices surged 19.6 cents, or 2.11%, to settle at $9.5740.

According to the U.S. Department of Agriculture, nearly 67% of the soybean crop was in good to excellent condition as of June 14, down from 69% in the preceding week and compared to 73% in the year-earlier period.

Almost 87% of the soybean crop was planted, below the five-year average pace of 90% for this time of year.

Meanwhile, US wheat for July delivery jumped 10.02 cents, or 2.05%, to trade at $4.9862 a bushel. On Tuesday, wheat shed 0.4 cents, or 0.1%, to close at $4.8860.

Agricultural meteorologists forecast rains in key U.S. wheat-growing states in the next few days, adding to concerns over the health of the winter-wheat crop.

Approximately 11% of the U.S. winter-wheat crop was harvested as of June 14. 15% of the crop was harvested in the same week a year earlier, while the five-year average for this time of year is 20%.

About 43% of the U.S. winter-wheat crop was rated good to excellent as of last week, while nearly 70% of the spring-wheat crop was in good to excellent condition.

Elsewhere on the Chicago Board of Trade, US corn for July delivery inched up 4.38 cents, or 1.24%, to trade at $3.5838 a bushel. Prices tacked on 5.6 cents, or 1.65%, on Tuesday to end at $3.5400.

73% of the corn crop was in good to excellent condition as of June 14, according to the USDA, down from 74% in the preceding week.

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