Grain futures - weekly outlook: December 15 - 19

Investing.com - U.S. corn and wheat futures rallied to multi-month highs on Friday, as heavy buying from large institutional investors lifted prices.

On the Chicago Mercantile Exchange, US corn for March delivery rallied to a session high of $4.1000 a bushel, the most since July 3, before settling at $4.0740, up 9.0 cents, or 2.26%.

The March corn contract picked up 12.4 cents, or 3.04%, on the week, the third straight weekly gain.

Earlier in the week, the U.S. Department of Agriculture lowered its estimate for U.S. corn reserves at the end of the 2014-15 season to 1.998 billion bushels, down from last month’s forecast of 2.008 billion.

However, global stockpiles will total 192.2 million metric tons, up from 191.5 million projected last month.

Meanwhile, US wheat for March delivery climbed 9.0 cents, or 1.51%, on Friday to settle at $6.0640 a bushel, after hitting a daily peak of $6.1340, a level not seen since June 10.

On the week, the March wheat contract gained 12.4 cents, or 2.04%, the third consecutive weekly advance.

The USDA said that domestic wheat stockpiles as of May 31 will total 654 million bushels, up from a previous estimate of 644 million bushels.

Global inventories of wheat at the end of the 2014-15 season will total 194.9 million metric tons, up from a forecast of 192.9 million projected in November.

Elsewhere on the Chicago Board of Trade, US soybeans for January delivery picked up 5.0 cents, or 0.48%, on Friday to end at $10.4720 a bushel.

On the week, the January soybean contract rose 11.2 cents, or 1.06%, the second straight weekly rise.

The USDA estimated that U.S. soybean stockpiles will total 410 million bushels at the end of the 2014-15 season, down from a previous forecast of 450 million.

The agency predicted that U.S. exports will hit 1.760 billion bushels, up from 1.720 billion forecast last month.

Gains were limited amid growing optimism over the soybean crop outlook in Brazil, a major soy exporter.

According to Brazil's crop agency, Conab, Brazilian farmers are expected to produce a record-high 95.8 million metric tons of soybeans, up from November's forecast of 90.5 million.

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.