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Grains rebound; Corn bounces off 3-year low on U.S. rain forecast

Published 10/03/2013, 06:13 AM
Investing.com - U.S. grain futures were higher on Thursday, with corn prices bouncing off the lowest level in more than three years as forecasts for rainfall across the U.S. Midwest may delay the pace of the harvest.

Updated weather forecasting models showed that as much as 3 inches of rain was expected across the Midwest in the next five days, potentially threatening yields and reducing the quality of the corn and soybean harvest.  

On the Chicago Mercantile Exchange, corn futures for December delivery traded at USD4.4063 a bushel, up 0.3%. Prices rose to a session high of USD4.4138 a bushel earlier in the day.

The December corn contract settled little changed on Wednesday to end at USD4.3900 a bushel. Prices of the grain fell to USD4.3500 earlier Wednesday, the weakest level since August 30, 2010.

Corn prices have been on a downward trend in recent weeks as investors monitored improving crop prospects in the U.S. Midwest.

The U.S. Department of Agriculture said earlier in the week that the U.S. corn crop will total 13.8 billion bushels in the 2013 marketing season, 28% larger than last year’s harvest and the largest crop on record.

Elsewhere on the CBOT, soybeans futures for November delivery traded at USD12.8088 a bushel, up 0.5%. Prices of the oilseed rose to a daily high of USD12.8138 a bushel earlier in the session.

The November soy contract ended 0.45% higher at USD12.7360 a bushel on Wednesday.

According to the USDA, approximately 11% of the U.S. soy harvest was completed as of last week, improving from 3% harvested in the preceding week.

The USDA also said that 53% of the soy crop was in ‘good’ to ‘excellent’ condition as of last week, up from 50% a week earlier.

Meanwhile, wheat for December delivery traded at USD6.8938 a bushel, up 0.5%. Wheat futures rose to a daily high of USD6.8938 a bushel earlier in the session.

The December contract settled up 0.7% at USD6.8600 a bushel on Wednesday.

Wheat prices have been well-supported in recent sessions amid ongoing indications of robust demand for U.S. wheat supplies. Prices climbed to a three-month high of USD6.9400 a bushel on September 30.

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

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