Grain futures mixed, corn continues to fall for an eight straight day

Grain futures were mixed today following USDAs acreage report on Friday with wheat and soybeans marking daily gains, while corn plunged.

On the Chicago Mercantile Exchange, wheat futures for September delivery traded at $6.6038 a bushel, up 0.48% on the day. Prices held in range between days high at $6.6375 and low of $6.5288. The grain is headed for a first daily gain in eight after marking a 5.87% weekly loss last week.

In its acreage report on Friday, the U.S. Department of Agriculture said that the planted area for 2013 will equal 56.5 million acres, 1% higher than last year. The 2013 winter wheat planted area equals 42.7 million acres, 3 percent above last year and up 2 percent from the previous estimate. Wheat prices fell nearly 3% on Friday after the USDA said wheat acreage was expected to hit the four-year high of 56.53 million. Increased wheat output is expected this year from Australia, Russia and Ukraine’s Black Sea region and Europe. Prices drew some support the past couple of weeks as rains delayed crop developing in the U.S.

In its weekly crop progress report last Monday, the USDA said that 20% of the winter wheat crop was harvested as of June 23, up from the prior week’s 11%. This, however, is well below last year’s 63% and the five-year average 37% reading.

As for the spring wheat, the USDA said that 96% of the crop was planted, compared to 92% in the previous week and below last year and the five-year average readings of 100% and 99% respectively. As of June 23, 90% of the spring wheat had emerged, 6% above the previous week, but below last year’s 100% and the five-year average reading of 97%.

Corn declines

Corn fell on Monday, continuing its 7-day declining streak as ample supply outlook from the U.S. and stronger dollar kept weighing on prices. On the CME, corn futures for September delivery traded at $5.4425 a bushel, down 0.50% on the day. Prices ranged between days high and low at $5.4538 and $5.4163 respectively. The grain settled 4.43% lower on Friday following USDAs acreage report and marked a major 17.26% weekly loss last week.

On Friday, the USDA reported that 97.4 million acres of land was sown to corn, up from last year. This is the highest planted acreage in the U.S. since 1936. Growers expect to harvest 89.1 million acres for grain, up 2 percent from last year.

Last week, corn crumbled around 12% on Monday, prior to USDA’s report in which the agency said that 96% of the nation’s corn crop has emerged as of June 23, up from the preceding week’s 92%. This, however, was lower than the last year’s 100% during the comparable week and the five-year average of 99%.

As for the corn crop condition, quality has remained overall the same in comparison to the previous week, but a lot better than last year’s crop. As of June 23, 8% of the crop fell in the “Very poor” and “Poor” categories, 27% in “Fair” and 65% were categorized as “Good” and “Excellent”. In 2012, 14% of the crop was of “Very poor” and “Poor” quality, 30% “Fair” and the remaining 56 was “Good” and “Excellent”.

Soybeans gain

Soybeans surged more than 1.4% on Monday, prior to USDAs weekly crop progress report. Soybeans August futures traded at $14.5225 a bushel, marking a 1.49% gain at 12:29 GMT. Prices varied between daily high and low at $14.5363 and $14.2063 respectively. Unlike other grains, soybeans settled only 0.16% lower on Friday and recorded a 4.17% weekly loss last week.

The USDA said in its report on Friday that the soybean planted area is estimated at a record high 77.7 million acres, up 1% compared to last year. Area for harvest, at 76.9 million acres, is up 1 percent from 2012 and will also be a record high, if realized.

Soybeans were recently pressured by reduced demand outlook from the oilseeds biggest consumer – China. The Asian country keeps on piling negative economic data, including todays both PMI readings. According to the National Bureau of Statistics and China Federation of Logistics and Purchasing, China’s PMI fell to 50.1 last month, below May’s 50.8 figure, but above expectations of 50.0, which is the neutral level of the scale.

Meanwhile, according to a separate private index prepared by HSBC and Markit Economics, operating conditions in China’s manufacturing sector worsened during June for a second month in a row. The Asian country’s HSBC PMI stood at 48.2 in June, down from May’s 49.2 reading and below projections of 48.3, straying further from the neutral level.

The U.S. Department of Agriculture said in its report last Monday that as of the week ending June 23, 92% of the U.S. soybeans crop was planted, up from the previous week’s 85%. However, this is below the five-year average of 95% and last year’s 99% during the comparable week.

The agency also reported that 81% of the crop emerged up to June 23, well above the prior week’s 66%, but still below the five-year average of 89% and last year’s 98% reading.

Market players are now looking into this weeks crop progress report by the U.S. Department of Agriculture due at 4:00 PM Eastern Time.