U.S. wheat, corn slump to 2-week low on upbeat supply outlook

Investing.com - U.S. wheat and corn futures extended losses from the previous session on Monday to hit two-week lows amid optimism over the outlook for global supplies.

On the Chicago Mercantile Exchange, US wheat for July delivery hit an intraday low of $4.9663 a bushel, the weakest level since June 2, before trading at $4.9688 during U.S. morning hours, down 6.53 cents, or 1.3%.

On Friday, wheat prices shed 0.4 cents, or 0.1%, to close at $5.0360. The July wheat contract lost 2.5% last week after the U.S. Department of Agriculture raised its outlook for domestic and global wheat supplies.

According to the agency, domestic wheat output will total 2.121 billion bushels in the 2015-16 season, while domestic wheat reserves in the season ending next May will total 814 million bushels.

Global ending wheat inventories next season will rise to 202.4 million metric tons from an estimated 200.4 million tons in 2014-15.

Meanwhile, US corn for July delivery inched down 1.98 cents, or 0.56%, to trade at $3.5063 a bushel after touching a daily low of $3.5063, a level not seen since June 1.

Corn prices lost 3.4 cents, or 0.98%, on Friday to end at $3.5300. Futures declined 2.15% last week after the USDA said that U.S. corn inventories at the end of the 2014-15 season in August will total 1.876 billion bushels.

The agency also projected global ending corn stockpiles at the end of the 2015-16 season at 195.2 million metric tons.

Elsewhere on the Chicago Board of Trade, US soybeans for July delivery dipped 6.72 cents, or 0.72%, to trade at $9.3288 a bushel, the lowest level since June 3.

Later in the day, the USDA will release updated crop progress numbers for the week ended June 14.

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