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Grain futures - weekly outlook: November 10 - 14

Published 11/09/2014, 08:52 AM
Soybean futures edge higher on robust demand for U.S. supplies
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Investing.com - U.S. soybean futures rose for the third consecutive session on Friday, amid indications of robust demand for U.S. supplies. Corn and wheat fell.

On the Chicago Mercantile Exchange, US soybeans for January delivery picked up 8.6 cents, or 0.85%, on Friday to settle the week at $10.3660 a bushel by close of trade on Friday.

The U.S. Department of Agriculture said Thursday that U.S. farmers sold 1.6 million tons of soybeans last week, above the high end of forecasts ranging from 900,000 to 1.1 million tons.

Despite Friday's upbeat performance, the January soybean contract lost 7.4 cents, or 0.7%, the first weekly decline in six weeks, as optimism over the pace of the U.S. harvest weighed.

According to the USDA, approximately 83% of the U.S. soy harvest was completed as of November 2, up from 70% in the preceding week and in line with the five-year average for this time of year.

Meanwhile, US corn for December delivery shed 3.6 cents, or 1.01%, on Friday to settle the week at $3.6740 a bushel by close of trade.

For the week, the December corn contract fell 7.0 cents, or 1.86%, following five straight weeks of gains, amid speculation beneficial weather in the U.S. Midwest will speed up the pace of the harvest.

Nearly 65% of the U.S. corn harvest was completed as of last week, improving from 46% a week earlier and just 8% below the five-year average of 73% for this time of year, according to the USDA.

Elsewhere on the Chicago Board of Trade, US wheat for December delivery dropped 5.6 cents, or 1.11%, on Friday to end the week at $5.1440 a bushel, the lowest since October 27.

On the week, the December wheat contract sank 21.8 cents, or 4.06%, the first weekly loss in seven weeks,

Wheat prices came under pressure after the USDA reported U.S. wheat export sales tumbled 40% from a week earlier.

In the week ahead, market players will focus on the release of the U.S. Department of Agriculture’s closely-watched monthly crop supply and demand report due on Monday, November 10.

Market analysts expect the USDA to boost its corn harvest outlook and lift its soybean forecast after generally favorable weather in the U.S. Midwest in recent weeks.

Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.

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