Black Friday Sale! Save huge on InvestingProGet up to 60% off

U.S. soybeans, corn trade near multi-month lows on supply outlook

Published 07/01/2014, 06:08 AM
U.S. grain futures trade near multi-month lows on supply outlook
ZS
-
ZW
-
ZC
-

Investing.com - U.S. soybean and corn futures traded near multi-month lows on Tuesday, after the U.S. Department of Agriculture forecast higher-than-expected domestic supplies this year.

On the Chicago Mercantile Exchange, U.S. soybeans for August delivery dipped 0.15%, or 2.0 cents, to trade at $13.2760 a bushel during U.S. morning hours.

The August soybean contract tumbled to $13.1820 on Monday, the lowest since February 11, before trimming losses to settle at $13.2960, down 3.5%, or 48.2 cents.

The USDA projected U.S. soybean seedings at a record-high 84.8 million acres, topping a range of analyst estimates and up from a prior forecast for about 81.49 million acres.

The agency also said U.S. inventories as of June 1 totaled 405 million bushels, above the average trade estimate of 387 million.

Meanwhile, U.S. corn for September delivery fell to a daily low of $4.1438 a bushel, the weakest level since January 10, before coming off the lows to last trade at $4.1713, down 0.26%, or 1.07 cents.

The September corn contract plunged 5.31%, or 23.4 cents, on Monday after the USDA said domestic corn stockpiles totaled 3.854 billion bushels on June 1, topping analyst estimates for about 3.7 billion bushels and 39% higher than the year-earlier level.

The agency estimated that U.S. farmers planted 91.6 million acres of corn this spring, the lowest in four years.

Elsewhere on the CBOT, U.S. wheat for September delivery declined 0.26%, or 1.52 cents, to trade at $5.7588 a bushel.

The September contract slumped to $5.6740 on Monday, the cheapest since February 4, before settling at $5.7740, down 2.74%, or 16.2 cents.

U.S. farmers planted approximately 56.47 million acres with the grain, up from a prior estimate of 55.815 million and above expectations for 55.818 million.

The USDA said that nearly 590 million bushels of wheat were in U.S. storage as of June 1, compared to expectations for 603 million bushels.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.