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Grain futures - weekly outlook: October 13 - 17

Published 10/12/2014, 08:06 AM
U.S. corn prices end the week higher despite Friday's losses
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Investing.com - U.S. corn and soybean futures sold off sharply on Friday, after the U.S. Department of Agriculture predicted record-setting harvests.

On the Chicago Mercantile Exchange, U.S. corn for December delivery tumbled 10.6 cents, or 3.12%, on Friday to settle at $3.3400 by close of trade.

The USDA estimated the 2014-15 corn harvest at a record-high of 14.47 billion bushels on Friday, up from a projection of 14.39 billion in September.

The agency also said corn yields would reach an all-time high of 174.2 bushels an acre, above last month’s estimate of 171.7 bushels an acre.

Despite Friday's losses, the December corn contract rose 10.8 cent, or 3.23%, the second straight weekly gain, amid speculation rainfall across the U.S. Midwest will delay the pace of the harvest.

Meanwhile, U.S. soybeans for November delivery dropped 19.4 cents, or 2.07%, on Friday to settle the week at $9.2240 a bushel by close of trade.

The USDA estimated this fall's U.S. harvest would reach an all-time high of 3.927 billion bushels, up from a forecast of 3.913 billion in September.

The government also raised its average yield outlook to 47.1 bushels per acre from 46.6 bushels.

Despite Friday's disappointing performance, the November soybean contract tacked on 10.2 cents, or 1.1%, the second consecutive weekly rise, as demand for U.S. exports increased last week.

Elsewhere on the Chicago Board of Trade, U.S. wheat for December delivery rallied 5.2 cents, or 1.06%, on Friday to end the week at $4.9840 a bushel.

On the week, the December wheat contract tacked on 12.8 cents, or 2.56%, after the USDA unexpectedly cut its outlook for world stockpiles.

The USDA said global inventories of wheat at the end of the 2014-15 season will total 192.59 million metric tons, down 1.9% from a forecast of 196.38 million projected in September.

U.S. ending stocks were forecast at 654 million bushels, down from a previous estimate of 698 million.

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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