Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Grain futures mixed; Wheat jumps 1% on Great Plains weather threat

Published 04/03/2013, 06:08 AM
Investing.com - U.S. grain futures were mixed during early U.S. morning hours on Wednesday, with wheat prices rising for a second day on the back of concerns over adverse weather conditions in the U.S. Great Plains region.

On the Chicago Mercantile Exchange, wheat for May delivery traded at USD6.7875 a bushel, up 1% on the day. The May contract rose by as much as 1.1% earlier to hit a daily high of USD6.7888 a bushel.

Wheat prices extended gains from the previous session as investors returned to the market to seek cheap valuations amid concerns freezing temperatures in major wheat-growing states across the Great Plains-region will hurt the winter crop.

Wheat traders have been closely monitoring weather and crop conditions in the area, where prolonged dryness threatens dormant winter wheat crops.

Wheat prices tumbled to USD6.6025 a bushel on Monday, the lowest level since June 22, as investors sold the grain after last week’s larger supply forecasts from the U.S. Department of Agriculture.

The agency said wheat stockpiles totaled 1.23 billion bushels at the start of March, 5% above the analysts' consensus of 1.17 billion bushels.

Meanwhile, corn futures for May delivery traded at USD6.4362 a bushel, up 0.5% on the day. The May contract rose by as much as 0.6% earlier in the day to hit a session high of USD6.4412 a bushel.

Corn futures fell to USD6.3412 a bushel on Tuesday, the lowest level since June 26, as market players continued to exit bets that prices will rise in response to last week’s bearish USDA supply report.

The USDA said U.S. corn stockpiles totaled 5.39 billion bushels as of March 1, well above market expectations of 4.99 billion bushels.

The USDA also said that U.S. farmers will plant 97.28 million acres of corn this year, the most planted since 1936.

Corn prices entered a bear market slump this week. Prices of the grain are down 22% since hitting an all-time high of USD8.3325 a bushel, set at the height of the U.S. drought in August 2012.

Elsewhere, soybeans futures for May delivery traded at USD13.9062 a bushel, down 0.25%. The May contract fell by as much as 0.8% earlier in the session to hit a daily low of USD13.8188 a bushel, the weakest level since January 11.

Soy prices continued to trend lower amid easing concerns over U.S. supplies.

The USDA said last week domestic soybean stockpiles on March 1 totaled 999 million bushels, 5.5% above market expectations of 947 million bushels.

The agency also said U.S. farmers are forecast to plant 77.1 million acres with soybeans this year, the fourth-highest level on record.

Soy futures, like corn, tumbled into bear market territory earlier this week. Prices of the oilseed are down 22% since hitting an all-time high of USD17.9475 a bushel, set in September.

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.