Investing.com - U.S. grain futures were higher during European morning trade on Tuesday, 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.
Grains found support after the U.S. dollar eased against its major counterparts, as the recent announcement of a European bailout for Spain moderately supported investor confidence, although uncertainty over the outcome of Greece’s Sunday elections weighed.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.15% to trade at 82.94.
A weaker dollar boosts the appeal of U.S. crops to overseas buyers and makes commodities more attractive as an alternative investment.
Grain traders are awaiting a monthly supply and demand forecast report from the USDA later in the day, the first time ever it is released during active Chicago futures trading hours.
Last month the CME Group's Chicago Board of Trade, which dominates agricultural markets, and rival IntercontinentalExchange expanded the trading day to 21 hours a day, up from the previous 17-hour schedule.
On the Chicago Mercantile Exchange, soybeans futures for July delivery traded at USD14.3463 a bushel, adding 0.65%. It earlier rose by as much as 0.9% to trade at a session high of USD14.3988 a bushel.
Prices touched USD14.4462 a bushel on Monday, the highest since May 17.
Soy futures continued to draw support from hot and dry weather across key soy-growing regions in the U.S.
The USDA is expected to cut its U.S. old-crop soybean ending stocks forecast to 189 million bushels. New-crop soybean stocks are seen at 143 million bushels, down 2 million bushels from the government's earlier estimate.
Elsewhere, corn futures for July delivery traded at USD5.9363 a bushel, easing up 0.35%. It earlier rose by as much 0.5% to trade at a session high of USD5.9450 a bushel. Prices hit a two-week high of USD6.0550 a bushel on June 8.
Sentiment on the grain has improved since touching a 17-month low on June 1, amid concerns that dry soil in the U.S. corn-belt could strain the development of crops in the region.
Analysts expect the government to lower its U.S. corn ending stocks estimates for the current marketing year. Last month, the USDA unexpectedly raised its forecast for near-term supplies of the grain and projected a record harvest this autumn.
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.
Meanwhile, wheat for July delivery traded at USD6.3788 a bushel, rallying 1.15%. It earlier rose by as much as 1.35% to trade at a daily high of USD6.3875 a bushel.
Wheat prices found support amid expectations the USDA will cut its forecast for next year's harvest, while likely also trimming its forecast for U.S. winter wheat production.
The USDA pegged the 2012-13 winter wheat crop at 1.69 billion bushels last month.
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.
Grains found support after the U.S. dollar eased against its major counterparts, as the recent announcement of a European bailout for Spain moderately supported investor confidence, although uncertainty over the outcome of Greece’s Sunday elections weighed.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.15% to trade at 82.94.
A weaker dollar boosts the appeal of U.S. crops to overseas buyers and makes commodities more attractive as an alternative investment.
Grain traders are awaiting a monthly supply and demand forecast report from the USDA later in the day, the first time ever it is released during active Chicago futures trading hours.
Last month the CME Group's Chicago Board of Trade, which dominates agricultural markets, and rival IntercontinentalExchange expanded the trading day to 21 hours a day, up from the previous 17-hour schedule.
On the Chicago Mercantile Exchange, soybeans futures for July delivery traded at USD14.3463 a bushel, adding 0.65%. It earlier rose by as much as 0.9% to trade at a session high of USD14.3988 a bushel.
Prices touched USD14.4462 a bushel on Monday, the highest since May 17.
Soy futures continued to draw support from hot and dry weather across key soy-growing regions in the U.S.
The USDA is expected to cut its U.S. old-crop soybean ending stocks forecast to 189 million bushels. New-crop soybean stocks are seen at 143 million bushels, down 2 million bushels from the government's earlier estimate.
Elsewhere, corn futures for July delivery traded at USD5.9363 a bushel, easing up 0.35%. It earlier rose by as much 0.5% to trade at a session high of USD5.9450 a bushel. Prices hit a two-week high of USD6.0550 a bushel on June 8.
Sentiment on the grain has improved since touching a 17-month low on June 1, amid concerns that dry soil in the U.S. corn-belt could strain the development of crops in the region.
Analysts expect the government to lower its U.S. corn ending stocks estimates for the current marketing year. Last month, the USDA unexpectedly raised its forecast for near-term supplies of the grain and projected a record harvest this autumn.
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.
Meanwhile, wheat for July delivery traded at USD6.3788 a bushel, rallying 1.15%. It earlier rose by as much as 1.35% to trade at a daily high of USD6.3875 a bushel.
Wheat prices found support amid expectations the USDA will cut its forecast for next year's harvest, while likely also trimming its forecast for U.S. winter wheat production.
The USDA pegged the 2012-13 winter wheat crop at 1.69 billion bushels last month.
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.