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Grain futures move higher ahead of USDA crop report

Published 07/11/2013, 06:07 AM
Investing.com - U.S. grain futures were broadly higher on Thursday, as traders readjusted positions ahead of a highly-anticipated report from the U.S. Department of Agriculture on U.S. and global grain supplies later in the session.

Market players also continued to monitor weather conditions across grain-growing regions in the U.S. Midwest and in the Great Plains.

On the Chicago Mercantile Exchange, corn futures for September delivery traded at USD5.5988 a bushel, up 1.1% on the day.

The September contract rose by as much as 1.2% earlier in the day to hit a session high of USD5.6013 a bushel, the strongest level since June 28.

Market analysts expect the USDA to cut its corn harvest forecast to 13.983 billion bushels in the current market season, down from the 14.005 billion bushels estimated last month.

Meanwhile, soybeans futures for August delivery traded at USD14.7438 a bushel, up 0.7% on the day. The August contract rose by as much as 0.8% earlier in the session to hit a daily high of USD14.7525 a bushel.

Market analysts expect the USDA to modestly upgrade its estimate on domestic supplies of the oilseed from the agency's last forecast of 265 million bushels.

Futures rose to a three-week high of USD14.7912 a bushel on Wednesday.

Soybean prices have been well-supported in recent sessions amid uncertainty over crop weather in the U.S. farm belt and amid fears over tight domestic supplies.

Elsewhere on the CBOT, wheat for September delivery traded at USD6.8463 a bushel, up 0.8% on the day. The September contract rose by as much as 0.9% earlier in the session to hit a daily high of USD6.8488 a bushel.

Wheat prices have been supported amid ongoing expectations of increased demand for U.S. supplies from China and amid concerns over crop prospects in Russia.

Russia is a major wheat exporter and competes with the U.S. for business on the global market. Crop losses in Russia could mean increased demand for U.S. supplies.

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

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