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Grain futures mostly lower; Corn tumbles on U.S. crop progress

Published 05/21/2013, 06:13 AM
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Investing.com - U.S. grain futures were mostly lower on Tuesday, with front-month corn prices falling sharply after government data showed U.S. farmers accelerated planting of the nation’s corn crops last week.

On the Chicago Mercantile Exchange, corn futures for July delivery traded at USD6.3363 a bushel, down 2.4% on the day.

The July contract fell by as much as 2.5% earlier in the day to hit a session low of USD6.3338 a bushel, the weakest level since May 10.

The U.S. Department of Agriculture said Monday that 71% of the U.S. corn crop was planted as of May 19, improving significantly from the 28% planted in the preceding week.

The five-year average for this time of the year is 79%.

Meanwhile, wheat for July delivery traded at USD6.7438 a bushel, down 1.4% on the day. The July contract fell by as much as 1.5% earlier in the session to hit a daily low of USD6.7413 a bushel, the weakest level since April 3.

Wheat futures have been under heavy selling pressure in recent sessions amid easing concerns over global supplies of the grain and as speculators pushed prices lower.

Updated weather forecasts continued to point to improved weather for developing crops in the Black Sea region.

Last week the USDA said that global wheat inventories at the end of the year will total 186.4 million metric tons, up from the month-earlier estimate of 182.26 million, citing increased production in Russia, Canada and Australia.

Elsewhere on the CBOT, soybeans futures for July delivery traded at USD14.6363 a bushel, down 0.1% on the day.

The July contract held in a range between USD14.5825 a bushel, the daily low and a session high of USD14.7075 a bushel, the strongest level since March 12.

The USDA said that only 24% of the U.S. soy crop was planted as of last week, up from 6% in the preceding week, but still significantly below the 71% planted in the same week a year earlier.

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

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