Investing.com - U.S. grain futures regained strength on Thursday, with wheat prices bouncing off the lowest level since June as investors squared positions ahead of Friday's highly-anticipated U.S. Department of Agriculture report on U.S. and global grain supplies.
On the Chicago Mercantile Exchange, wheat for May delivery traded at USD6.8938 a bushel, up 0.85% on the day. The May contract rose by as much as 0.9% earlier in the day to hit a session high of USD6.8962 a bushel.
Wheat prices fell to an eight-month low of USD6.8125 a bushel on Wednesday.
Market analysts expected the USDA report to show that U.S. wheat inventories before the 2013 harvest will total 702 million bushels, up from 691 million forecast last month.
Futures have been on a downward spiral in recent weeks after a winter storm brought much-needed moisture to drought-stricken wheat-growing areas in the U.S. Great Plains in late-February.
Wheat traders have been closely monitoring weather and crop conditions in the Great Plains-region, where prolonged dryness threatens dormant winter wheat crops.
Meanwhile, corn futures for May delivery traded at USD6.9138 a bushel, up 0.35% on the day. The May contract rose by as much as 0.45% earlier in the day to hit a daily high of USD6.9288 a bushel.
Corn futures fell more 3% on Wednesday to hit USD6.8812 a bushel, the weakest level since February 26.
Improving moisture conditions have weighed on corn futures in recent weeks, as snowfall in key corn-growing regions in the U.S. improved crop prospects ahead of the planting season due to begin in April.
Snow in the U.S. has been encouraging for crops, helping ease drought conditions.
U.S. corn stockpiles before the 2013 harvest probably will be larger than the government forecast last month. The USDA could say that U.S. corn reserves will total 646 million bushels, compared to 632 million bushels projected by the USDA in February.
Global inventories of the grain before the 2013-14 harvest will total 117.5 million tons, smaller than a previous forecast of 118 million tons.
Elsewhere, soybeans futures for May delivery traded at USD14.7025 a bushel, up 0.25% on the day. The May contract rose by as much as 0.5% earlier in the day to hit a session high of USD14.7162 a bushel.
Soy prices were higher amid expectations the U.S. government will revise up its exports projections of the oilseed, due to a disruption to supplies from major South American growers.
Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
