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Grain futures - Weekly outlook: July 22 - 26

Published 07/21/2013, 10:07 AM
Investing.com - U.S. grain prices ended Friday’s session broadly higher, as market players continued to monitor weather conditions across grain-growing regions in the U.S. Midwest and in the Great Plains.

On the Chicago Mercantile Exchange, soybeans for August delivery jumped 1.4% on Friday to settle the week at USD14.8988 a bushel by close of trade.

Earlier in the day, the August contract rose to a daily high of USD14.9263 a bushel, the strongest level since June 21.

Prices of the oilseed rallied 4.1% on the week amid concerns that adverse weather in key soy-growing states in the U.S. may damage crops.

According to the U.S. Department of Agriculture, approximately 26% of the U.S. soy crop bloomed as of last week, significantly below the 63% recorded in the same week a year earlier.

The agency also said that nearly 65% of the soy crop was in ‘good’ to ‘excellent’ condition as of last week, down from 67% in the preceding week.

Meanwhile, corn futures for September delivery eased up 0.5% on Friday to settle the week at USD5.4313 a bushel.

Corn prices found support after the USDA said U.S. farmers sold 1.7 million tonnes of corn for the current and new marketing years, above market expectations for sales of 1.6 million tonnes.

Despite Friday’s upbeat performance, the September corn futures contract ended the week with a loss of 0.2%.

Elsewhere on the Chicago Board of Trade, wheat for September delivery added 0.4% on Friday to settle the week at USD6.6388 a bushel.

Wheat futures were boosted after the USDA said China acquired 120,000 metric tons of soft-red winter wheat.

U.S. wheat sales to foreign buyers are up 44% from the same period a year earlier.

Despite Friday’s gains, the CBOT September wheat contract lost 2.5% on the week.

In the week ahead, corn and soybean traders will continue to pay close attention to weather forecasts for grain-growing regions in the U.S. Midwest, while wheat traders will monitor temperatures in the Great Plains-region.

Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.

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