Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

U.S. wheat futures rebound from contract low ahead of USDA report

Published 03/09/2015, 07:20 AM
U.S. wheat futures rise ahead of USDA report
ZS
-
ZW
-
ZC
-

Investing.com - U.S. wheat futures rose for the second consecutive session on Monday to move further away from a contract low as investors readjusted positions ahead of the U.S. Department of Agriculture’s closely-watched monthly supply and demand report due on Tuesday.

On the Chicago Mercantile Exchange, US wheat for May delivery rallied 9.25 cents, or 1.92%, to trade at $4.9150 a bushel during U.S. morning hours.

On Friday, wheat for May delivery touched a contract-low of $4.7840 before turning higher to settle up 2.0 cents, or 0.42%, at $4.8240.

The May wheat contract tumbled 31.5 cents, or 5.81%, last week, the worst weekly loss since September, as concerns over ample global supplies and indications of reduced demand for U.S. wheat weighed.

Meanwhile, US corn for May delivery inched up 5.0 cents, or 1.3%, to trade at $3.9063 a bushel, as strength in wheat spilled over.

Wheat and corn prices are linked because both can be used as animal feed.

US corn for May delivery shed 4.4 cents, or 1.15%, on Friday to end at $3.8600. Prices of the grain declined 6.76 cents, or 1.53%, last week.

Elsewhere on the Chicago Board of Trade, US soybeans for May delivery tacked on 5.75 cents, or 0.58%, to trade at $9.9113 a bushel.

US soybeans for May delivery fell to $9.7660 a bushel on Friday, the lowest since February 12, before ending down 0.4 cents, or 0.05%, at $9.8500, as concerns over Brazilian export prospects eased.

The May soybean contract slumped 44.74 cents, or 4.37%, last week, the first weekly loss in five weeks, as a two-week strike by Brazilian truck drivers appeared to be coming to an end.

Brazil is a major soybean exporter and competes with the U.S. for business on the global market, which could weigh on demand for U.S. supplies.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.