Grain futures gain ahead of USDA report

Grain futures surged on Monday as investors looked ahead into the U.S. Department of Agricultures weekly update on U.S. planting progress. Wheat for July delivery hit a three-week high and traded at $7,1313 a bushel, followed by a decrease to $7,1275 at 11:13 GMT, up 1.04% on the day.

Prices found support in concerns about the grains quality. According to the U.S. Department of Agriculture, as of last week 31% of the wheat crop was rated “good” to “excellent”. It remained unchanged from the preceding week and still below the 54% for the same period last year.

Winter-wheat rated “very poor” to “poor” rose by 1% and stood at 42%, compared to the preceding week, while only 12% was in that category last year.

Corn futures for July delivery traded at $6,6813 a bushel at 11:16 GMT, up 0,93% on the day. According to the USDA, 86% of the U.S. corn crop was planted as of last week, below the five-year average of 90% and the same period last year of 99%.

Soybean futures for July delivery also rose and traded $15,3613 a bushel, up 1,73% on the day. According to USDAs report last week, 44% of the soybean crop was planted, below the five-year average of 61% and way below the 87% planted the same week last year. Soybeans prices were supported by steady demand from China last week, which dried up U.S. stockpiles. This is a fifth straight week of gain. Prices surged 7.7% in May as the worst drought in the U.S. since 1930 hit last July and eroded production.