Investing.com - U.S. grain futures were higher during European morning trade on Thursday, as investors readjusted positions ahead of the release of a key monthly U.S. Department of Agriculture report on U.S. and global grain supplies.
On the Chicago Mercantile Exchange, corn futures for July delivery traded at USD6.1113 a bushel during European morning trade, gaining 0.5%. It earlier rose by as much as 0.6% to trade at a session high of USD6.1188 a bushel.
Analysts expect the USDA to cut its estimate on U.S. corn ending stocks for the 2011-12 marketing season, which are already at a 16-year low.
But the report was expected to show 2012-13 stocks would rebound by nearly 130% to hit a six-year high as farmers in the U.S. planted the largest corn area in 75 years.
Analysts on average expect the USDA to forecast domestic corn inventories of 758 million bushels as of August 31 and 1.704 billion bushels for the end of the next marketing year.
The U.S. produced 38% of the world's corn last year, making it the both world's largest corn producing nation and the largest exporter of the grain, while China is the world’s largest consumer of the grain.
Meanwhile, wheat for July delivery traded at USD6.0438 a bushel, adding 0.65%. It earlier rose by as much as 1.1% to trade at a daily high of USD6.0738 a bushel.
Prices touched USD5.9862 on Wednesday, the lowest since January 20.
The market expects U.S. farmers to harvest their largest winter wheat crop since the 2008-09 season, after near-perfect growing conditions in key wheat-growing states in the U.S. Great Plains region boosted crops.
Wheat prices have lost almost 10% since March 30 after the USDA pegged global wheat supplies in the current marketing season at 206.27 million tons, the highest in 11 years in its April Supply and Demand report.
Elsewhere on the Chicago Board of Trade, soybeans futures for July delivery traded at USD14.4338 a bushel during European morning trade, climbing 0.9%. It earlier rose by as much as 1.2% to trade at a session high of USD14.4663 a bushel.
The USDA report is expected to show a decline in soybean stocks at the end of the 2011-12 marketing season, adding further pressure to near-term soybean supplies.
However, some traders expect that high soy prices may prompt more U.S. farmers to "double crop" their fields, a strategy in which they plant soybeans immediately after harvesting wheat in the spring.
That would boost soybeans acreage and ease concerns about tightening supplies.
Soybean prices have been under pressure since touching a four-year high of USD15.1237 a bushel on May 2, as investors liquidated long positions to lock in gains from an impressive rally.
Soybean prices have rallied nearly 19% since the beginning of February, and rose almost 6.5% in April, as market sentiment has been dominated by concerns over distressed crops in major South American soy growers and amid indications demand for U.S. soy from top consumer China remains strong.
Corn is the biggest U.S. crop, valued at USD66.7 billion in 2010, followed by soybeans at USD38.9 billion, government figures show. Wheat was fourth at USD13 billion, behind hay.
On the Chicago Mercantile Exchange, corn futures for July delivery traded at USD6.1113 a bushel during European morning trade, gaining 0.5%. It earlier rose by as much as 0.6% to trade at a session high of USD6.1188 a bushel.
Analysts expect the USDA to cut its estimate on U.S. corn ending stocks for the 2011-12 marketing season, which are already at a 16-year low.
But the report was expected to show 2012-13 stocks would rebound by nearly 130% to hit a six-year high as farmers in the U.S. planted the largest corn area in 75 years.
Analysts on average expect the USDA to forecast domestic corn inventories of 758 million bushels as of August 31 and 1.704 billion bushels for the end of the next marketing year.
The U.S. produced 38% of the world's corn last year, making it the both world's largest corn producing nation and the largest exporter of the grain, while China is the world’s largest consumer of the grain.
Meanwhile, wheat for July delivery traded at USD6.0438 a bushel, adding 0.65%. It earlier rose by as much as 1.1% to trade at a daily high of USD6.0738 a bushel.
Prices touched USD5.9862 on Wednesday, the lowest since January 20.
The market expects U.S. farmers to harvest their largest winter wheat crop since the 2008-09 season, after near-perfect growing conditions in key wheat-growing states in the U.S. Great Plains region boosted crops.
Wheat prices have lost almost 10% since March 30 after the USDA pegged global wheat supplies in the current marketing season at 206.27 million tons, the highest in 11 years in its April Supply and Demand report.
Elsewhere on the Chicago Board of Trade, soybeans futures for July delivery traded at USD14.4338 a bushel during European morning trade, climbing 0.9%. It earlier rose by as much as 1.2% to trade at a session high of USD14.4663 a bushel.
The USDA report is expected to show a decline in soybean stocks at the end of the 2011-12 marketing season, adding further pressure to near-term soybean supplies.
However, some traders expect that high soy prices may prompt more U.S. farmers to "double crop" their fields, a strategy in which they plant soybeans immediately after harvesting wheat in the spring.
That would boost soybeans acreage and ease concerns about tightening supplies.
Soybean prices have been under pressure since touching a four-year high of USD15.1237 a bushel on May 2, as investors liquidated long positions to lock in gains from an impressive rally.
Soybean prices have rallied nearly 19% since the beginning of February, and rose almost 6.5% in April, as market sentiment has been dominated by concerns over distressed crops in major South American soy growers and amid indications demand for U.S. soy from top consumer China remains strong.
Corn is the biggest U.S. crop, valued at USD66.7 billion in 2010, followed by soybeans at USD38.9 billion, government figures show. Wheat was fourth at USD13 billion, behind hay.