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U.S. soybeans bounce off 1-week low on U.S. weather concerns

Published 07/09/2015, 06:00 AM
U.S. soybean futures rise on weather concerns
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Investing.com - U.S. soybean futures rose for the second consecutive session on Thursday to move further away from a more than one-week low hit in the previous session as cool and wet weather conditions renewed concerns over crop prospects in the U.S. Midwest.

On the Chicago Mercantile Exchange, US soybeans for August delivery jumped 14.35 cents, or 1.44%, to trade at $10.1175 a bushel during U.S. morning hours.

Excessive rain across the U.S. Midwest is forecast to damage crop conditions and dampen the quality of the harvest.

A day earlier, prices of the oilseed fell to $9.8720, the weakest level since June 30, before recovering to close at $9.9660, up 4.6 cents, or 0.48%.

According to the U.S. Department of Agriculture, nearly 63% of the soybean crop was in good to excellent condition as of July 5, above market expectations.

Soybean emergence was 93% complete, improving from 89% a week earlier, while 21% of the crop bloomed, up from 8% in the preceding week.

Meanwhile, US wheat for September delivery inched up 2.98 cents, or 0.52%, to trade at $5.8038 a bushel early on Thursday. Wheat dropped 7.6 cents, or 1.32%, on Wednesday to end at $5.7740.

Wheat regained strength after updated weather forecasting models pointed to rainfall in key U.S. wheat-growing states in the coming days.

Prices of the grain had been under pressure this week as drier weather across the U.S. grain belt was expected to boost harvest prospects.

Nearly 55% of the U.S. winter-wheat crop was harvested as of July 5, according to the USDA, up from 38% a week earlier. Approximately 55% of the crop was harvested in the same week last year, while the five-year average for this time of year is 59%.

About 40% of the U.S. winter-wheat crop was rated good to excellent as of last week, down from 41% in the preceding week. The agency also said that nearly 70% of the spring-wheat crop was in good to excellent condition, compared to 72% a week earlier.

Elsewhere on the Chicago Board of Trade, US corn for September delivery tacked on 2.77 cents, or 0.65%, to trade at $4.2738 a bushel in early trade on Thursday. On Wednesday, corn rose 1.2 cents, or 0.3%, to settle at $4.2440.

Approximately 69% of the U.S. corn crop was in good to excellent condition as of July 5, up from 68% in the preceding week and above market forecasts.

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

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