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U.S. soybeans, corn trade near multi-month lows on supply outlook

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Investing.com -

Investing.com - U.S. soybean and corn futures traded near multi-month lows on Tuesday, after the U.S. Department of Agriculture forecast higher-than-expected domestic supplies this year.

On the Chicago Mercantile Exchange, U.S. soybeans for August delivery dipped 0.15%, or 2.0 cents, to trade at $13.2760 a bushel during U.S. morning hours.

The August soybean contract tumbled to $13.1820 on Monday, the lowest since February 11, before trimming losses to settle at $13.2960, down 3.5%, or 48.2 cents.

The USDA projected U.S. soybean seedings at a record-high 84.8 million acres, topping a range of analyst estimates and up from a prior forecast for about 81.49 million acres.

The agency also said U.S. inventories as of June 1 totaled 405 million bushels, above the average trade estimate of 387 million.

Meanwhile, U.S. corn for September delivery fell to a daily low of $4.1438 a bushel, the weakest level since January 10, before coming off the lows to last trade at $4.1713, down 0.26%, or 1.07 cents.

The September corn contract plunged 5.31%, or 23.4 cents, on Monday after the USDA said domestic corn stockpiles totaled 3.854 billion bushels on June 1, topping analyst estimates for about 3.7 billion bushels and 39% higher than the year-earlier level.

The agency estimated that U.S. farmers planted 91.6 million acres of corn this spring, the lowest in four years.

Elsewhere on the CBOT, U.S. wheat for September delivery declined 0.26%, or 1.52 cents, to trade at $5.7588 a bushel.

The September contract slumped to $5.6740 on Monday, the cheapest since February 4, before settling at $5.7740, down 2.74%, or 16.2 cents.

U.S. farmers planted approximately 56.47 million acres with the grain, up from a prior estimate of 55.815 million and above expectations for 55.818 million.

The USDA said that nearly 590 million bushels of wheat were in U.S. storage as of June 1, compared to expectations for 603 million bushels.

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.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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