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Grain futures - weekly outlook: September 15 - 19

Published 09/14/2014, 09:12 AM
U.S. wheat futures end the week down 6.1% after USDA raises supply forecast
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Investing.com - U.S. corn, soy and wheat futures ended the week close to their lowest level in four years on Friday, after the U.S. Department of Agriculture predicted record-setting harvests that topped analysts' expectations.

On the Chicago Mercantile Exchange, U.S. corn for December delivery fell 2.4 cents, or 0.73%, on Friday to settle at $3.3840 by close of trade.

A day earlier, corn futures hit $3.3560 a bushel, a level not seen since June 2010.

For the week, the December corn contract lost 17.6 cents, or 4.94%, the biggest weekly decline in two months.

The USDA estimated the corn harvest at a record-high of 14.39 billion bushels on Thursday, above forecasts for 14.28 billion and up from a projection of 14.03 billion in August.

Global ending stocks were forecast to exceed 2 billion bushels for the first time in a decade.

Meanwhile, U.S. soybeans for November delivery tacked on 3.6 cents, or 0.38%, on Friday to settle the week at $9.8520 a bushel by close of trade.

Prices of the oilseed slumped to $9.6940 a bushel on Thursday, the lowest level since July 2010.

On the week, the November soybean contract declined 36.2 cents, or 3.54%.

The USDA estimated this fall's U.S. harvest would reach an all-time high of 3.913 billion bushels, compared to expectations for 3.882 billion.

Soybean ending stocks will more than triple in the 2014-15 marketing season to 475 million bushels, up from 430 million estimated last month and the highest since the 2006-07 season.

Elsewhere on the Chicago Board of Trade, U.S. wheat for December delivery tumbled 7.0 cents, or 1.37%, on Friday to end the week at $5.0240 a bushel.

Wheat prices fell to a daily low of $5.0000 a bushel, the weakest since July 2010.

On the week, the December wheat contract lost 32.8 cents, or 6.12%.

The USDA said global inventories of wheat at the end of the 2014-15 season will total 196.38 million metric tons, above estimates of 193.0 million tons and compared to 192.96 projected in August.

U.S. ending stocks were forecast at 698 million bushels, up from a previous estimate of 663 million, due in large part to weak export demand for U.S. supplies.

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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