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U.S. wheat futures rise for second day ahead of USDA planting report

Published 03/30/2015, 06:27 AM
U.S. wheat rises ahead of USDA planting report
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Investing.com - U.S. wheat futures extended strong gains from the previous session on Monday, as market players turned their attention to the release of the U.S. Department of Agriculture's prospective plantings report on Tuesday.

On the Chicago Mercantile Exchange, US wheat for May delivery tacked on 2.73 cents, or 0.54%, to trade at $5.1113 a bushel during U.S. morning hours.

On Friday, wheat rallied 8.4 cents, or 1.7%, to settle at $5.0760 as lack of rainfall in the U.S. grain belt fuelled concerns over the health of the winter-wheat crop.

According to the USDA, Oklahoma winter wheat was rated 44% good to excellent, up from 40% in the previous week, while Texas winter wheat improved by 4% to 55%.

In Kansas, the top wheat-producing state, the wheat crop was rated 41% good to excellent, unchanged from the preceding week.

Meanwhile, US soybeans for May delivery advanced 2.78 cents, or 0.29%, to trade at $9.7038 a bushel as investors returned to the market in wake of recent losses.

US soybeans for May delivery hit $9.6500 on Friday, the weakest level since March 20, before ending at $9.6720, down 7.2 cents, or 0.74%.

The May soybean contract dipped 7.38 cents, or 0.54%, last week, the fourth straight weekly loss, as optimism over the outlook for supplies in Brazil and Argentina drove down prices.

Brazil and Argentina are major soybean exporters and compete with the U.S. for business on the global market. Large South American crop prospects could weigh on demand for U.S. supplies.

Elsewhere on the Chicago Board of Trade, US corn for May delivery shed 0.53 cents, or 0.13%, to trade at $3.9088 a bushel. On Friday, US corn for May delivery eased down 0.2 cents, or 0.06%, to close at $3.9100.

The USDA's prospective plantings report is likely to show farmers in the U.S. cut corn sowings this spring in favor of planting more-profitable soybeans.

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

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