US grain and soyabean futures rose on Friday as investors adjusted positions before the release of closely watched crop reports that are projected to show lower wheat inventories and plantings. Wheat futures reached their highest prices in two weeks before the US Department of Agriculture, in an acreage report, is expected to lower its planting estimate by 0.5 percent from March to 47.102 million acres, according to a Reuters poll.
A separate report on grain stocks is expected to report wheat inventories as of June 1 were 1.091 billion bushels, down 7.6 percent from a year earlier. Analysts expect the USDA to raise its estimate for soyabean plantings and also peg June 1 soyabean stocks at the highest on record for the time of year.
For corn, the average analyst estimate sees the USDA putting June 1 corn stocks at a 30-year high. September wheat futures were up 21 cents at $5.04-1/2 a bushel at 11:40 a.m. EDT at the Chicago Board of Trade. December corn futures, which represent the crop that will be harvested this fall, were up 7-1/2 cents at $3.73-1/2 a bushel. November soyabean futures were up 6-3/4 cents at $8.90-1/4 a bushel.
A fall in the dollar added support to US grain futures on Friday, as it makes US farm products more attractive on the global market, traders said. Soyabeans sank to their lowest in almost 10 years earlier in June as investors fretted over looming trade tariffs that could disrupt massive flows of US soyabeans to China, the world's top importer of the oilseed.
US soyabeans will be subject to retaliatory Chinese tariffs from July 6, which could halt shipments. Favourable US crop weather has also weighed on corn and soya prices.
Comments
Comments are closed.