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Grain futures - weekly outlook: June 9 - 13

Published 06/08/2014, 08:57 AM
Corn, wheat futures rally on short-covering
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Investing.com - U.S. corn and wheat futures rallied off multi-month lows on Friday, as investors returned to the market to close out bets on lower prices and seek cheap valuations in wake of recent losses.

On the Chicago Mercantile Exchange, U.S. corn for July delivery rallied 2.23%, or 10.0 cents, to settle at $4.5900 a bushel by close of trade on Friday. Prices slumped to $4.4700 earlier in the day, the weakest level since February 18.

Despite Friday’s rally, the July corn contract still lost 1.41%, or 6.6 cents on the week as beneficial weather in the U.S. Midwest aided planting progress.

Nearly 95% of the U.S. corn crop was planted as of June 1, compared to 88% in the preceding week, according to the U.S. Department of Agriculture. The five-year average for this time of year is 94%.

Meanwhile, U.S. wheat for July delivery fell to a session low of $6.0300 a bushel on Friday, the weakest level since February 28, before turning higher to settle at $6.1820 by close of trade, up 2.06%, or 12.4 cents.

On the week, the July wheat contract lost 1.43%, or 9.0 cents, the fourth consecutive weekly decline.

Wheat prices have been under heavy selling pressure in recent weeks as market players liquidated long positions amid easing concerns over tightening global supplies.

According to the USDA, nearly 88% of the U.S. spring wheat crop was planted as of last week, improving from 74% in the preceding week.

Elsewhere on the Chicago Board of Trade, U.S. soybeans for July delivery dipped 0.24%, or 3.4 cents, on Friday to settle the week at $14.5700 a bushel. Earlier in the day, prices of the oilseed fell to $14.5600, the lowest since May 9.

On the week, the July soybean contract fell 2.42%, or 36.2 cents.

In the week ahead, market players will focus on the release of the USDA’s monthly production and supply and demand reports, scheduled for release on Wednesday.

The agency will also produce weekly 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.

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