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Wheat futures decline for 2nd day as U.S. weather improves

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Investing.com -

Investing.com - U.S. wheat futures declined for the second consecutive session on Tuesday, as forecasts for much-needed rainfall in the U.S. grain belt eased concerns over the health of the winter-wheat crop.

On the Chicago Mercantile Exchange, US wheat for May delivery fell 4.83 cents, or 0.91%, to trade at $5.2338 a bushel during U.S. morning hours.

A day earlier, wheat lost 8.4 cents, or 1.59%, to settle at $5.2760, as updated weather models forecast much-needed rains in key U.S. wheat-growing states.

The U.S. Department of Agriculture said Monday that the U.S. winter wheat crop was rated 44% good to excellent, compared to 35% in the same week a year earlier. The five-year average for the first week in April is 47%.

Meanwhile, US corn for May delivery inched down 0.78 cents, or 0.2%, to trade at $3.8463 a bushel. On Monday, corn dipped 1.4 cents, or 0.39%, to end at $3.8500 amid indications of ample supplies.

The USDA said last week that U.S. corn inventories on March 1 totaled 7.745 billion bushels, 11% higher than last year.

The agency also projected U.S. farmers would plant 89.199 million acres with corn in 2015, surpassing forecasts for 88.735 million but down from 90.597 million in 2014.

Elsewhere on the Chicago Board of Trade, US soybeans for May delivery declined 3.27 cents, or 0.33%, to trade at $9.7513 a bushel. Prices of the oilseed slumped 7.4 cents, or 0.76%, on Monday to close at $9.7840.

Optimism over the outlook for supplies in Brazil and Argentina has weighed on soybeans in recent weeks.

Brazil and Argentina are major soybean exporters and compete with the U.S. for business on the global market. Large South American crop prospects could weigh on demand for U.S. supplies.

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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