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U.S. soybeans struggle near 1-week low on upbeat crop prospects

Published 07/08/2015, 06:07 AM
© Reuters.  Soybean futures struggle amid upbeat U.S. crop prospects
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Investing.com - U.S. soybean futures fell for the fifth consecutive session on Wednesday to hit a more than one-week low as improving crop prospects in the U.S. Midwest weighed.

On the Chicago Mercantile Exchange, US soybeans for August delivery fell to an intraday low of $9.8763 a bushel, the weakest level since June 30, before trading at $9.8850 during U.S. morning hours, down 3.1 cents, or 0.31%.

A day earlier, prices of the oilseed lost 30.2 cents, or 2.96%, to close at $9.9200 as concerns over the global economy dampened the demand outlook.

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 slumped 8.48 cents, or 1.45%, to trade at $5.7612 a bushel early on Wednesday. Wheat dropped 10.2 cents, or 1.72%, on Tuesday to end at $5.8520.

Wheat has been under pressure this week as drier weather across the U.S. grain belt is 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 shed 2.75 cents, or 0.65%, to trade at $4.2025 a bushel in early trade on Wednesday. On Tuesday, corn dipped 3.2 cents, or 0.76%, to settle at $4.2320.

Dry weather after excessive rains across the U.S. Midwest is forecast to aid crop conditions and boost the quality of the harvest.

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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