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Grain futures lower; Corn slumps as U.S. planting concerns ease

Published 06/04/2013, 06:15 AM
Investing.com - U.S. grain futures were lower on Tuesday, with front-month corn prices coming under pressure for a second day amid easing concerns over U.S. planting prospects.

On the Chicago Mercantile Exchange, corn futures for July delivery traded at USD6.5300 a bushel, down 0.35% on the day. The July contract fell by as much as 1.2% earlier in the day to hit a session low of USD6.4813 a bushel.

Corn futures fell to a seven-day low of USD6.4412 a bushel on Monday after the U.S. Department of Agriculture said that 91% of the U.S. corn crop was planted as of June 2, up from 86% planted in the preceding week.

The five-year average for this time of the year is 95%.

Meanwhile, wheat for July delivery traded at USD7.0225 a bushel, down 0.9% on the day. The July contract fell by as much as 1% earlier in the session to hit a daily low of USD7.0013 a bushel.

Wheat futures rallied to a three-week high of USD7.1437 a bushel on Monday amid ongoing concerns over U.S. crop prospects.

The USDA said that approximately 32% of the U.S. winter wheat crop was rated “good” to “excellent” as of last week, below the 52% recorded in the same week a year earlier.

Winter-wheat crops in “very poor” to “poor” conditions rose to 43% from 43% in the preceding. Only 18% of the winter-wheat crop was rated “very poor” to “poor” in the same week a year earlier.

Elsewhere on the CBOT, soybeans futures for July delivery traded at USD15.2225 a bushel, down 0.65% on the day.

The July contract fell by as much as 0.9% earlier in the session to hit a daily low of 15.1825 a bushel.

The oilseed rallied on Monday to re-approach the highest level since November after the USDA said that 57% of the U.S. soy crop was planted as of last week, significantly below the 93% planted in the same week a year earlier.

The five-year average for this time of year is 74%.

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

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