Grain futures - weekly outlook: February 23 - 27

Investing.com - U.S. wheat futures plunged more than 3% on Friday to hit the lowest level in more than two weeks, amid indications of weak demand for U.S. supplies.

On the Chicago Mercantile Exchange, US wheat for March delivery sank 17.4 cents, or 3.32%, on Friday to settle at $5.1020 a bushel by close of trade.

Earlier in the day, wheat prices touched $5.0940, the lowest level since February 5.

On the week, the March wheat contract lost 24.55 cents, or 4.38%, the first weekly decline in three weeks, after Egypt cancelled a tender to purchase U.S. wheat.

Egypt is the world's biggest wheat importer.

Wheat has been under heavy selling pressure in recent weeks amid ample global supplies and indications of reduced demand for U.S. wheat.

Meanwhile, US corn for March delivery slumped 4.4 cents, or 1.15%, on Friday to close at $3.8520 a bushel, as losses in wheat weighed on prices.

Wheat and corn prices are linked because both can be used as animal feed.

The March corn contract eased down 1.92 cents, or 0.64%, on the week, halting two straight weeks of gains.

Elsewhere on the Chicago Board of Trade, US soybeans for March delivery shed 8.0 cents, or 0.79%, on Friday to settle at $9.9920 a bushel by close of trade.

On Thursday, prices hit $10.1700, the most since January 15 after the U.S. Department of Agriculture surprised the market by forecasting a slight fall in the 2015-16 soybean plantings estimate.

For the week, the March soybean contract rose 6.82 cents, or 0.98%, the third consecutive weekly gain.

Despite recent gains, prices of the oilseed remain vulnerable amid optimism over crop prospects in Brazil and Argentina.

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.