Wheat firms as USDA says crop condition worst in 12 years

April 9th, 2014

By:

Category: Grains

(Reuters) – U.S. wheat futures rose for a third consecutive on Wednesday after the U.S. Department of Agriculture said the condition of the winter crop deteriorated to its lowest ranking in 12 years.

FUNDAMENTALS

* Chicago Board Of Trade May wheat rose 0.36 percent to at $6.83-1/2 a bushel, having closed up 0.7 percent on Tuesday.

* May soybeans rose 0.2 percent to $14.85-1/2 a bushel, having firmed 1.25 percent on Tuesday.

* May corn rose 0.1 percent to $5.08 a bushel, having gained 1.56 percent in the previous session.

* The USDA said in its first weekly crop progress report of 2014 that 35 percent of the U.S. winter wheat crop was in good to excellent condition, down from 62 percent in November, ahead of the crop’s winter dormancy.

* The rating was also down from a year ago, when USDA rated 36 percent of the crop as good to excellent.

* The USDA in its monthly supply/demand report on Wednesday is likely to lower its forecasts of U.S. 2013/14 corn and soybean ending stocks due to robust exports, according to analysts surveyed by Reuters.

* Corn drew additional support from a sluggish start to planting in the heart of the U.S. Corn Belt, where soil temperatures are still too cold after a harsh winter.

* Soybeans draws support from expectations that USDA will cut its outlook for U.S. 2013/14 soybean ending stocks to 139 million bushels, the smallest in five years. USDA also was expected to cut its forecast for the Brazilian soybean harvest to 87.43 million bushels.

MARKET NEWS

* The dollar languished at three-week lows against a basket of major currencies on Wednesday, having broken decisively lower as the yen squeezed higher and even the euro gained a tailwind.

* U.S. crude oil prices rose more than 2 percent on Tuesday in a technical-driven rally boosted by a weaker U.S. dollar and forecasts for a draw on stockpiles of domestic oil products.

* U.S. stocks rose on Tuesday, snapping a three-day losing streak as investors bought beaten-down social media and Internet shares.

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