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Grain futures - weekly outlook: April 27 - May 1

Published 04/26/2015, 08:16 AM
© Reuters.  U.S. corn ends the week down 3.95% on Midwest planting progress
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Investing.com - U.S. corn futures fell to the lowest level in more than five months on Friday, amid indications of rapid planting progress in the U.S. Midwest.

On the Chicago Mercantile Exchange, US corn for May delivery hit a session low of $3.6360 a bushel, a level not seen since November 20, before closing at $3.6440, down 6.2 cents, or 1.69%.

For the week, the May corn contract lost 15.13 cents, or 3.95%, the biggest weekly decline in 12 weeks as forecasts for drier weather across the Midwest was expected to further aid planting of the crop.

According to the U.S. Department of Agriculture, approximately 9% of the corn crop was planted as of April 19, up from just 2% in the preceding week and above the 6% planted during the same week a year earlier.

Meanwhile, US wheat for May delivery slumped 11.6 cents, or 2.36%, to settle at $4.8600 a bushel on Friday. Earlier in the session, wheat slumped to $4.8500, the lowest level since March 10.

On the week, the May wheat contract dropped 7.5 cents, or 1.37%, the third straight weekly loss, as dry weather conditions in key U.S. wheat-growing states was expected to benefit crop conditions.

The USDA said that the U.S. winter wheat crop was rated 42% good to excellent as of last week. Approximately 34% of the crop was in good to excellent condition in the same week a year earlier.

The agency also said that 36% of the spring wheat crop was planted as of last week, up from 17% in the preceding week. Only 9% of the crop was planted in the same week a year earlier, while the five-year average for this time of year is 19%.

Elsewhere on the Chicago Board of Trade, US soybeans for May delivery inched down 8.4 cents, or 0.87%, to end at $9.6960 a bushel. For the week, the May soybean contract tacked on 1.0 cent, or 0.16%.

Gains were limited amid optimism over the outlook for supplies in South America. 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.

In the week ahead, market players will focus on the release of key USDA data, including crop progress and weekly export sales figures.

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

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