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Grain futures - weekly outlook: October 6 - 10

Published 10/05/2014, 09:07 AM
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Investing.com - U.S. soybean futures ended the week close to the lowest level in more than four years on Friday, as ongoing expectations for record supplies weighed.

On the Chicago Mercantile Exchange, U.S. soybeans for November delivery dropped 12.2 cents, or 1.33%, on Friday to settle the week at $9.1220 a bushel by close of trade.

Prices of the oilseed hit $9.0400 a bushel on October 1, the lowest level since July 2010.

Influential industry group Informa Economics said Friday that U.S. soybean production will rise 20% this year to 4.017 billion bushels, well above the 3.913 billion forecast last month by the U.S. Department of Agriculture.

Despite Friday's disappointing performance, the November soybean contract tacked on 5.0 cents, or 0.54%, the first weekly gain in six weeks, as demand for U.S. exports increased last week.

Meanwhile, U.S. corn for December delivery inched up 0.4 cents, or 0.15%, on Friday to settle at $3.2320 by close of trade.

Corn futures hit $3.1820 a bushel on October 1, a level not seen since September 2009, as expectations of record yields across much of the U.S. grain belt drove prices lower.

The USDA in September forecast U.S. farmers will produce a record 14.395 bushels. The agency is scheduled to update its forecasts on October 10.

For the week, the December corn contract picked up 1.0 cent, or 0.3%, the first weekly gain in five weeks, amid speculation rainfall across the U.S. Midwest will delay the pace of the harvest.

Elsewhere on the Chicago Board of Trade, U.S. wheat for December delivery rose 3.0 cents, or 0.62%, on Friday to end the week at $4.8560 a bushel.

On the week, the December wheat contract rallied 14.4 cents, or 2.96%, as increased demand for U.S. supplies boosted prices.

According to the USDA, exporters sold 741,038 metric tons of U.S. wheat last week, a two-month high that topped the upper range of market forecasts.

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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