Grain futures - weekly outlook: June 29 - July 3

Investing.com - U.S. wheat futures soared almost 6% on Friday, amid speculation excessive rainfall in the U.S. Midwest will damage crops and delay the pace of the harvest.

According to data from the National Weather Service, up to six times the normal amount of rain has fallen in parts of the Midwest over the past two weeks, and more precipitation is in the forecast for the coming days.

On the Chicago Mercantile Exchange, US wheat for July delivery hit an intraday peak of $5.6620 a bushel, a level not seen since January 13, before settling at $5.6220, up 30.2 cents, or 5.69%.

On the week, the July wheat contract sky-rocketed 72.87 cents, or 14.7%, amid concerns over the pace of the winter-wheat harvest.

According to the U.S. Department of Agriculture, nearly 19% of the U.S. winter-wheat crop was harvested as of June 21, trailing the five-year average of 31% for this time of year.

About 41% of the U.S. winter-wheat crop was rated good to excellent as of last week, while nearly 71% of the spring-wheat crop was in good to excellent condition.

Meanwhile, US corn for July delivery jumped 8.4 cents, or 2.26%, on Friday to end at $3.8500 a bushel after rising to a session high of $3.9000, the most since March 31.

On the week, corn futures surged 33.0 cents, or 8.84%, tracking strong gains in wheat. Corn and wheat prices are linked because both can be used as animal feed.

Approximately 71% of the corn crop was in good to excellent condition as of June 21, according to the USDA, down from 73% in the preceding week.

Elsewhere on the Chicago Board of Trade, US soybeans for July delivery rose to $10.2420 a bushel on Friday, the highest level since March 2, before trimming gains to close at $10.0200, up 1.6 cents, or 0.17%.

For the week, the July soybean contract tacked on 27.0 cents, or 2.93%, the fifth consecutive weekly gain, amid growing concerns over U.S. crop conditions.

The USDA said that nearly 65% of the soybean crop was in good to excellent condition as of June 21, compared to 72% in the year-earlier period.

Almost 90% of the soybean crop was planted as of last week up, below the five-year average of 95% for this time of year, while soybean emergence was 84% complete, trailing the five-year average pace for the week of 87%.

In the week ahead, market players will focus on a pair of key reports from the U.S. Department of Agriculture on acreage and quarterly stocks due on Tuesday, June 30. The agency will also produce data on 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.