U.S. wheat futures climb to 2-month high before USDA supply report

Investing.com - U.S. wheat futures rose to a two-month high on Wednesday, as investors looked ahead to the U.S. Department of Agriculture’s closely-watched monthly crop supply and demand report due later in the session.

Market players expect the agency to raise its estimates for wheat and corn supplies and lower its outlook for soybeans for the current marketing season.

On the Chicago Mercantile Exchange, US wheat for July delivery hit an intraday peak of $5.3738 a bushel, the most since April 6, before trading at $5.3538 during U.S. morning hours, up 2.77 cents, or 0.52%.

A day earlier, wheat prices rallied 4.2 cents, or 0.8%, to settle at $5.3220 after agricultural meteorologists forecast further rains in key U.S. wheat-growing states, adding to concerns over the health of the winter-wheat crop.

According to the USDA, only 4% of the U.S. winter-wheat crop was harvested as of June 7, compared to 8% harvested in the same week a year earlier and below the five-year average of 12% for this time of year.

Approximately 43% of the U.S. winter-wheat crop was rated good to excellent as of last week, down from 44% in the preceding week. The agency also said that nearly 69% of the spring-wheat crop was in good to excellent condition, compared to 71% in the preceding week.

Meanwhile, US corn for July delivery inched down 0.88 cents, or 0.24%, to trade at $3.6412 a bushel. Corn prices hit $3.6840 on Tuesday, the highest level since May 18, before turning lower to end at $3.6500, down 0.2 cents, or 0.07%.

Approximately 74% of the corn crop was in good to excellent condition as of June 7, according to the USDA, unchanged from the preceding week. Corn emergence rose to 91% last week from 84% a week earlier, above the five-year average of 90%.

Elsewhere on the Chicago Board of Trade, US soybeans for July delivery tacked on 0.77 cents, or 0.08%, to trade at $9.5138 a bushel. On Tuesday, prices of the oilseed rose to $9.5500, a level not seen since May 19, before closing at $9.5140, up 7.2 cents, or 0.77%.

The USDA said that nearly 79% of the soybean crop was planted as of June 7, up from 71% in the preceding week. Approximately 86% of the crop was planted in the same week a year earlier, while the five-year average for this time of year is 81%.

Soybean emergence was 64% complete, improving from 49% a week earlier, while the five-year average pace for the week is 63%.

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