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Grain futures - weekly outlook: May 26 - 30

Published 05/25/2014, 07:56 AM
Grain futures - weekly outlook: May 26 - 30
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Investing.com - U.S. wheat futures fell to a ten-week low on Friday, as market players continued to liquidate long positions amid easing concerns over tightening global supplies.

On the Chicago Mercantile Exchange, U.S. wheat for July delivery fell to a session low of $6.5120 a bushel on Friday, the weakest level since March11, before subsequently settling at $6.5240 a bushel by close of trade, down 1.02%, or 6.6 cents.

On the week, the July wheat contract lost 3.23%, or 21.8 cents, the second consecutive weekly decline.

Wheat prices have been under heavy selling pressure in recent sessions after the U.S. Department of Agriculture projected higher global supplies than analysts had expected earlier this month.

Meanwhile,U.S. corn for July delivery inched up 0.26%, or 1.2 cents, on Friday to close the week at $4.7800 a bushel. Prices hit $4.7240 a bushel on Thursday, the lowest since March 4.

Despite Friday’s modest gains, the July corn contract dropped 1.11%, or 5.4 cents on the week as beneficial weather in the U.S. Midwest aided planting progress.

Elsewhere on the Chicago Board of Trade, U.S. soybeans for July delivery shed 0.21%, or 3.2 cents, on Friday to settle the week at $15.1540 a bushel.

Prices of the oilseed surged to $15.3660 a bushel on Thursday, the most since June 13, as ongoing concerns over tight supplies in the U.S. and robust export demand lifted prices.

On the week, the July soybean contract rallied 3.32%, or 50.4 cents, the strongest weekly gain in five weeks.

In the week ahead, floor trading on the CBOT will remain closed on Monday, May 26 because of the Memorial Day holiday.

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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