Grain futures - weekly outlook: January 19 - 23

Investing.com - U.S. corn futures rebounded on Friday, as investors returned to the market to seek cheap valuations after prices fell to the lowest level in almost two months.

On the Chicago Mercantile Exchange, US corn for March delivery jumped 7.0 cents, or 1.84%, to settle at $3.8700 a bushel by close of trade on Friday.

Corn hit $3.7600 on Thursday, the weakest level since November 21, before settling at $3.8000, down 1.0 cent, or 0.26%.

Despite Friday's gains, the March corn contract shed 13.2 cents, or 3.29%, on the week, thanks to heavy losses recorded in the first half of the week amid indications of plentiful supplies.

The U.S. Department of Agriculture said on January 12 that the U.S. harvest totaled 14.216 billion bushels last year on yields of 171 bushels an acre, both record-highs.

Meanwhile, US soybeans for March delivery inched up 0.6 cents, or 0.08%, on Friday to end the week at $9.9160 a bushel. Prices of the oilseed touched $9.8300 earlier in the day, a level not seen since October 27.

On the week, the March soybean contract tumbled 60.6 cents, or 5.75%, as optimism over crop prospects in major South American growers underlined concerns over ample global supplies.

According to the USDA, U.S. farmers harvested 3.969 billion bushels of soybeans last year on yields of 47.8 bushels an acre, both all-time highs.

Elsewhere on the Chicago Board of Trade, US wheat for March delivery was flat on Friday to close at $5.3260 a bushel.

A day earlier, wheat fell to $5.2800, the lowest since November 12, before closing at $5.3260, down 5.0 cents, or 0.93%.

On the week, the March wheat contract lost 31.0 cents, or 5.5%, the biggest weekly drop since September, amid ample global supplies and indications of reduced demand for U.S. wheat.

The USDA forecast domestic reserves this spring at 687 million bushels, up from last month’s forecast of 654 million.

According to the agency, wheat inventories at the start of last month totaled 1.525 billion bushels, 3% higher from the same date in 2013.

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.