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Grain futures - weekly outlook: October 27 - 31

Published 10/26/2014, 09:39 AM
U.S. corn rallies for fourth consecutive week
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Investing.com - U.S. grain futures tumbled on Friday, as investors cashed out of the market to lock in gains from a recent rally which took prices to the highest level in almost two months.

On the Chicago Mercantile Exchange, US corn for December delivery shed 6.6 cents, or 1.88%, on Friday to settle the week at $3.5300 a bushel by close of trade.

Futures rallied to a daily high of $3.6500 earlier in the session, the most since September 2.

Despite Friday's losses, the December corn contract rose 5.0 cents, or 1.41%, the fourth straight weekly gain, as a slowdown in the U.S. harvest boosted prices.

According to the U.S. Department of Agriculture, nearly 31% of the U.S. corn harvest was completed as of October 19, below the five-year average of 53% for this time of year.

Meanwhile, US soybeans for November delivery dropped 15.6 cents, or 1.59%, on Friday to settle the week at $9.7740 a bushel by close of trade on Friday.

Prices of the oilseed surged to $10.0200 a bushel earlier in the day, a level not seen since September 9.

Despite Friday's disappointing performance, the November soybean contract tacked on 25.8 cents, or 2.63%, the fourth consecutive weekly rise.

Approximately 53% of the U.S. soy harvest was completed as of last week, compared to the five-year average of 66% for this time of year, according to the USDA.

Elsewhere on the Chicago Board of Trade, US wheat for December delivery declined 9.0 cents, or 1.71%, on Friday to end the week at $5.1760 a bushel.

Prices of the grain hit $5.3920 earlier in the day, the most since September 5.

On the week, the December wheat contract tacked on 1.6 cents, or 0.3%, the fifth consecutive weekly rise.

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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