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Grain futures - weekly outlook: June 2 - 6

Published 06/01/2014, 08:48 AM
U.S. wheat ends the week with a loss of 3.85%
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Investing.com - U.S. wheat futures ended Friday’s session close to a three-month low, as forecasts of improved US weather and ample global supplies weighed on the market.

On the Chicago Mercantile Exchange, U.S. wheat for July delivery fell to a session low of $6.2540 a bushel on Friday, the weakest level since March4, before subsequently settling at $6.2720 by close of trade, down 0.83%, or 5.2 cents.

On the week, the July wheat contract lost 3.86%, or 25.2 cents, the third consecutive weekly decline. Wheat plunged 11.6% in May, the biggest monthly drop since September 2011.

Wheat prices sold off in May as market players liquidated long positions amid easing concerns over tightening global supplies.

Meanwhile, U.S. corn for July delivery slumped to a daily low of $4.6500 a bushel on Friday, the least since March 3, before settling at $4.6560, down 0.8%, or 3.6 cents.

The July corn contract dropped 2.59%, or 12.4 cents on the week as beneficial weather in the U.S. Midwest aided planting progress. In May, the grain dropped 10%, the most in a year.

According to the U.S. Department of Agriculture, nearly 88% of the U.S. corn crop was planted as of May 27, compared to 73% in the preceding week. The five-year average for this time of year is 88%.

Elsewhere on the Chicago Board of Trade, U.S. soybeans for July delivery dipped 0.38%, or 5.6 cents, on Friday to settle the week at $14.9320 a bushel. On the week, the July soybean contract fell 1.46%, or 22.2 cents.

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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