Grain futures mixed, soybeans decline on favorable weather, corn rebounds after a renewed 33-month low

Grain futures were mixed on Thursday with wheat and corn marking minor daily gains, while soybeans fell to the lowest level since May as favorable weather conditions boosted crop prospects.

On the Chicago Board of Trade, soybeans for August delivery traded at $13.8338 a bushel at 9:57 GMT, down 0.71% on the day. Prices ranged between days high at $13.9625 and low of $13.8013 a bushel, the lowest since May 8. The oilseed settled 4.6% lower on Wednesday, extending this weeks decline to over 7.1% after surging 4.32% the previous one.

Soybeans tumbled as favorable weather conditions for crop developing in growing areas boosted optimism that U.S. output will surge to a record. DTN said in a report yesterday that scattered thunderstorms and mild weather is expected during the next 10 days in the Midwest, which would benefit both corn and soybeans, the countrys two biggest crops. The oilseed has fallen 11% so far this year as the USDA projected domestic output will jump to a record 3.42 billion bushels, which would boost global inventories by 20% to an all-time record high of 74.1 million tons.

In its weekly crop progress report, the U.S. Department of Agriculture said that as of July 21, 46% of the soybeans crop had bloomed, marking a 20% weekly advance since the previous report. However, blooming fell behind last year’s 78% during the comparable week and the five-year average of 59%.

Goldman Sachs’s 12-month price estimate for soybeans remained at $11 per bushel.

As for the soybeans condition, the government agency reported it was overall the same like last week and far better than the previous season. As of July 21, 8% of the crop was categorized as “Very poor” and “Poor”, the same like the preceding week and well below 2012′s 25%. Meanwhile, 28% of the crop fell in the “Fair” category compared to 27% a week earlier and 34% last year. As for the premium quality, 64% was rated good-excellent, 1% less than the week ending July 14 but well above last year’s 31%.

Corn slightly up

Meanwhile, corn rebounded after hitting a fresh 33-month low during Asian trading. The grain traded at $5.0938 a bushel at 9:58 GMT, up 0.07% on the day. Prices ranged between days low of $5.0725 a bushel, a freshly hit 33-month low, and days high of $5.1063. Futures settled little over 2.7% lower on Wednesday, extending this weeks decline to over 6% after slipping 0.18% the previous one.

Corn shed 31% this year as the U.S. Department of Agriculture confirmed expectations for reduction in the total output to 13.95 billion bushels, down from 14.005. However, this is still an all-time record high and is 29% higher than last year’s drought damaged crop. This year’s global stockpiles are projected to rise to 150.97 million tons by the end of the 2013-2014 marketing year, 22% more than the previous period.

The USDA said in its weekly crop progress report on Monday that this year’s crop condition is a lot better than the last season’s, but a bit worse than the previous week. As of July 21, 11% of the crop was categorized as “Very poor” and “Poor” compared to 9% a week earlier and 45% in 2012. Meanwhile, 26% was categorized as “Fair”, above last week’s 25% and below last year’s 29%. As for the premium quality, 63% was rated as good-excellent, compared to 66% a week earlier and 26% in 2012.

Wheat gains

Meanwhile, wheat made a minor daily gain and traded at $6.5438 at 9:58 GMT, up 0.06% on the day. Prices held in range between days high and low of $6.5638 and $6.5188 a bushel respectively. The grain settled 0.12% lower yesterday after declining the past two days, extending this weeks fall to over 1.4% so far.

Market players are also bearish for wheat as the USDA projects a record high global output of 697.8 million tons amid increased production in Russia and the European Union. Goldman Sachs’s 12-month price estimate for wheat stood at $6.50 per bushel.

The USDA said in its crop progress report on Monday that as of July 21, 75% of the nation’s winter wheat crop was harvested, compared to 67% a week earlier. This was 1% below the five-year average pace but below last year’s 84% during the comparable week.

The USDA said spring wheat condition was overall better than last season’s and almost unchanged from a week earlier. As of July 21, 5% of the crop was categorized as “Very poor” and “Poor”, the same like the previous week and better than last year’s 11%. Meanwhile, 27% of the grain was of “Fair” quality compared to 25% a week earlier and 29% in 2012. As for the premium crop, 68% was rated “Good” and “Excellent”, below 70% as of July 14 but above last year’s 60% during the comparable week.