Investing.com - U.S. grain futures ended Friday’s session lower, with soybean prices tumbling more than 2% following the release of the U.S. Department of Agriculture’s closely-watched monthly report on U.S. and global grain supplies.
On the Chicago Mercantile Exchange, soybeans for March delivery plunged 2.25% Friday to settle at USD14.5338 a bushel by close of trade. The March contract fell to USD14.5188 a bushel earlier in the day, the weakest level since January 30.
On the week, soy futures lost 1.55%, the first weekly decline in five weeks.
Soy prices came under heavy selling pressure after the USDA forecast larger-than-expected inventories of the oilseed.
Soybean inventories on October 1 will total 60.12 million metric tons, more than the 59.46 million estimated in January and 8.8% higher than a year earlier
Expectations for bumper crops in major South American soy growers also added to the selling pressure.
The USDA said Brazil will harvest a record 83.5 million tonnes of soybeans this spring, on pace to pass the U.S. as the top producer for the first time.
Combined soybean production in Brazil and Argentina will rise 28% to a record 136.5 million
World production will total a record 269.5 million tons in the current marketing year, more than the 269.41 million forecast in January. In the previous season, global output totaled 238.73 million tons.
Elsewhere on the Chicago Board of Trade, corn futures for March delivery fell 0.1% Friday to settle the week at USD7.0988 a bushel. Prices fell to a session low of USD7.0688 a bushel earlier in the day, the weakest level since January 11.
The March corn contract lost 3.5% on the week.
Corn prices fell to the lowest levels of the session after the USDA said U.S. stockpiles before the next harvest will be 5% larger than forecast a month ago.
U.S. inventories will total 632 million bushels on August 31, up from 602 million forecast in January.
The upward revision reflected slowing demand for U.S. supplies. U.S. exporters will sell 900 million bushels of corn in the current marketing season, down from 950 million forecast last month and the lowest since 1972.
Last year, U.S. exporters sold 1.543 billion bushels of corn.
The data also showed that global inventories of the grain on October 1 will be 118.04 million tons, up from 115.99 million predicted a month earlier.
Meanwhile, wheat for March delivery was little changed on Friday to settle the week at USD7.5612 a bushel. On the week, the March wheat contract lost 1.3%, the third consecutive weekly decline.
The USDA cut its forecasts for U.S. wheat reserves at the end of the crop's current marketing year on May 31 to a four-year low of 691 million bushels, 3.5% lower than the agency’s January estimate of 716 million bushels.
Global wheat inventories at the end of the year will be 176.73 million metric tons, up from the month-earlier estimate of 176.64 million
Wheat’s losses were limited amid growing concerns over crop conditions in the U.S. Great Plains-region, where prolonged dryness threatens now-dormant winter wheat crops.
Little or no rain fell in the past 30 days in parts of Kansas, the biggest U.S. winter-wheat grower, National Weather Service data showed.
In the week ahead, corn and soybean traders will continue to pay close attention to weather forecasts for grain-growing regions in Brazil and Argentina, while wheat traders will monitor temperatures in the Great Plains-region.
Market players will also focus on the USDA’s weekly exports data on Thursday.
Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.
On the Chicago Mercantile Exchange, soybeans for March delivery plunged 2.25% Friday to settle at USD14.5338 a bushel by close of trade. The March contract fell to USD14.5188 a bushel earlier in the day, the weakest level since January 30.
On the week, soy futures lost 1.55%, the first weekly decline in five weeks.
Soy prices came under heavy selling pressure after the USDA forecast larger-than-expected inventories of the oilseed.
Soybean inventories on October 1 will total 60.12 million metric tons, more than the 59.46 million estimated in January and 8.8% higher than a year earlier
Expectations for bumper crops in major South American soy growers also added to the selling pressure.
The USDA said Brazil will harvest a record 83.5 million tonnes of soybeans this spring, on pace to pass the U.S. as the top producer for the first time.
Combined soybean production in Brazil and Argentina will rise 28% to a record 136.5 million
World production will total a record 269.5 million tons in the current marketing year, more than the 269.41 million forecast in January. In the previous season, global output totaled 238.73 million tons.
Elsewhere on the Chicago Board of Trade, corn futures for March delivery fell 0.1% Friday to settle the week at USD7.0988 a bushel. Prices fell to a session low of USD7.0688 a bushel earlier in the day, the weakest level since January 11.
The March corn contract lost 3.5% on the week.
Corn prices fell to the lowest levels of the session after the USDA said U.S. stockpiles before the next harvest will be 5% larger than forecast a month ago.
U.S. inventories will total 632 million bushels on August 31, up from 602 million forecast in January.
The upward revision reflected slowing demand for U.S. supplies. U.S. exporters will sell 900 million bushels of corn in the current marketing season, down from 950 million forecast last month and the lowest since 1972.
Last year, U.S. exporters sold 1.543 billion bushels of corn.
The data also showed that global inventories of the grain on October 1 will be 118.04 million tons, up from 115.99 million predicted a month earlier.
Meanwhile, wheat for March delivery was little changed on Friday to settle the week at USD7.5612 a bushel. On the week, the March wheat contract lost 1.3%, the third consecutive weekly decline.
The USDA cut its forecasts for U.S. wheat reserves at the end of the crop's current marketing year on May 31 to a four-year low of 691 million bushels, 3.5% lower than the agency’s January estimate of 716 million bushels.
Global wheat inventories at the end of the year will be 176.73 million metric tons, up from the month-earlier estimate of 176.64 million
Wheat’s losses were limited amid growing concerns over crop conditions in the U.S. Great Plains-region, where prolonged dryness threatens now-dormant winter wheat crops.
Little or no rain fell in the past 30 days in parts of Kansas, the biggest U.S. winter-wheat grower, National Weather Service data showed.
In the week ahead, corn and soybean traders will continue to pay close attention to weather forecasts for grain-growing regions in Brazil and Argentina, while wheat traders will monitor temperatures in the Great Plains-region.
Market players will also focus on the USDA’s weekly exports data on Thursday.
Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.