U.S. wheat futures fall from 6-week peak, Midwest rains in focus

Investing.com - U.S. wheat futures declined on Tuesday, as investors booked profits one day after prices rallied to the highest level in almost six weeks amid forecasts for rain in the U.S.

On the Chicago Mercantile Exchange, US wheat for July delivery slumped 6.4 cents, or 1.23%, to trade at $5.1500 a bushel during U.S. morning hours.

On Monday, wheat rallied to $5.3020, the most since April 8, before paring gains to end at $5.2160, up 10.6 cents, or 2.1%.

Updated weather forecasting models pointed to more rainfall in the U.S. Great Plains-region later this week, which could potentially damage the maturing winter-wheat crop.

The U.S. Department of Agriculture said Monday that the U.S. winter wheat crop was rated 45% good to excellent as of May 17, up from 44% in the preceding week.

The agency also said that nearly 94% of the spring wheat crop was planted as of last week, up from 87% in the preceding week. Only 47% of the crop was planted in the same week a year earlier, while the five-year average for this time of year is 65%.

Meanwhile, US corn for July delivery shed 2.77 cents, or 0.76%, to trade at $3.6463. A day earlier, corn tacked on 2.4 cents, or 0.68%, to close at $3.6800.

According to the USDA, approximately 85% of the corn crop was planted as of May 17, up from 75% in the preceding week. Nearly 71% of the crop was planted during the same week a year earlier, while the five-year average for this time of year is 75%.

Corn emergence was 56% complete, improving from 29% a week earlier, while the average pace for mid-May is 40%.

Elsewhere on the Chicago Board of Trade, US soybeans for July delivery dipped 2.77 cents, or 0.29%, to trade at $9.5163 a bushel. Prices of the oilseed fell to $9.5000 on Monday, a level not seen since April 14, before recovering to settle at $9.5440, up 1.2 cents, or 0.13%.

Nearly 45% of the soybean crop was planted as of last week, according to the USDA, up from 31% in the preceding week. Nearly 31% of the crop was planted in the same week a year earlier, while the five-year average for this time of year is 36%.

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