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Grain futures - weekly outlook: February 2 - 6

Published 02/01/2015, 09:11 AM
© Reuters.  Wheat futures plunge 14.7% in January
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Investing.com - U.S. wheat and soybean futures fell to their lowest levels in more than three months on Friday, as indications that global supplies are more than ample to meet demand drove down prices.

On the Chicago Mercantile Exchange, US wheat for March delivery slumped 5.0 cents, or 0.98%, on Friday to close the week at $5.0260 a bushel.

Earlier in the day, wheat fell to $4.9700, the lowest level since October 13.

On the week, the March wheat contract lost 26.0 cents, or 4.91%, the sixth straight weekly decline.

Prices of the grain plunged 86.13 cents, or 14.69%, in January amid ample global supplies and indications of reduced demand for U.S. wheat.

Meanwhile, US soybeans for March delivery touched a session low of $9.5500 a bushel on Friday, a level not seen since October 21, before settling at $9.6100, down 7.2 cents, or 0.75%.

The March soybean contract declined 10.75 cents, or 1.11%, the third consecutive weekly loss.

Prices of the oilseed lost 5.99% in January amid concerns over weakening demand from China and as optimism over crop prospects in Brazil and Argentina underlined worries over ample global supplies.

Elsewhere on the Chicago Board of Trade, US corn for March delivery shed 1.4 cents, or 0.4%, to settle at $3.7000 a bushel on Friday, after hitting a daily low of $3.6560, the weakest level since November 20.

For the week, the March corn contract sank 16.0 cents, or 4.14%. Corn plunged 24.76 cents, or 6.7%, in January amid indications of plentiful 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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