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Grain futures - Wheat falls to fresh 8-month low on Great Plains storm

Published 02/26/2013, 06:07 AM
Investing.com - U.S. grain futures were mostly lower during European morning hours on Tuesday, with wheat prices falling to the lowest level since June as a winter storm brought much-needed moisture to drought-stricken wheat-growing areas in the U.S. Great Plains.

On the Chicago Mercantile Exchange, wheat for March delivery traded at USD7.0100 a bushel, down 0.2% on the day.

The March contract slumped by as much as 1.3% earlier to hit a session low of USD6.9250 a bushel, the weakest level since June 25.

Wheat prices came under heavy selling pressure after a second major snowstorm in a week fell in major wheat-growing states across the Great Plains-region, such as Kansas and Oklahoma.

The U.S. National Weather Service said more than a foot of snow was expected to fall in parts of the region, four days after a storm brought as much as 20 inches.

Wheat traders have been closely monitoring weather and crop conditions in the area, where prolonged dryness threatens dormant winter wheat crops.

Meanwhile, soybeans futures for March delivery traded at USD14.4400 a bushel, down 0.5% on the day. The March contract fell by as much as 1% earlier in the session to hit a daily low of USD14.3675 a bushel, the cheapest level since February 19.

Soy prices were lower for a second day amid indications of improving crop weather in major South American growers Argentina and Brazil.

Argentina's Soybean Belt received more rainfall than expected in recent days, potentially boosting yields and upgrading the quality of the harvest.

Elsewhere, corn futures for March delivery traded at USD6.9800 a bushel, up 0.6% on the day. The March contract rose by as much as 0.65% earlier in the day to hit a session high of USD6.9825 a bushel.

Corn’s gains were limited amid a weak technical picture after prices broke below the key psychological USD7.00-a-bushel level last week.

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

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