Grain futures - weekly outlook: May 11 - 15

Investing.com - U.S. wheat futures rallied sharply on Friday, amid fresh concerns over crop prospects in the U.S. Midwest and Great Plains-region.

On the Chicago Mercantile Exchange, US wheat for July delivery jumped 8.6 cents, or 1.85%, to settle at $4.8140 a bushel on Friday. Wheat slumped to a contract-low of $4.6060 on Tuesday.

On the week, the July wheat contract rose 10.63 cents, or 1.79%, halting four straight weeks of losses.

Friday’s gains came after the Wheat Quality Council's annual tour projected below-average yields in Kansas, fuelling concerns over the outlook for U.S. supplies. Kansas is the largest wheat-producing state in U.S.

Hard red winter-wheat production in Kansas was projected at 288.5 million bushels, below the five-year crop tour average of 313.6 million bushels.

Meanwhile, US corn for July delivery tacked on 1.4 cents, or 0.41%, on Friday to end at $3.6300 a bushel. For the week, corn futures inched up 1.74 cents, or 0.28%, the first weekly gain in three weeks.

Prices fell to $3.5560 on Tuesday, the lowest level since October 27, amid indications of rapid planting progress in the U.S. Midwest last week.

According to the U.S. Department of Agriculture, approximately 55% of the corn crop was planted as of May 3, up from 19% in the preceding week. Nearly 28% of the crop was planted during the same week a year earlier, while the five-year average for this time of year is 38%.

Elsewhere on the Chicago Board of Trade, US soybeans for July delivery added 1.2 cents, or 0.13%, on Friday to close at $9.7620 a bushel. For the week, the July soybean contract advanced 10.75 cents, or 1.08%.

Prices of the oilseed remained supported by strong gains in the soy oil market.

Gains were limited amid optimism over crop prospects in major South American growers. Brazil and Argentina are major soybean exporters and compete with the U.S. for business on the global market.

Large South American crop prospects could weigh on demand for U.S. supplies.

In the week ahead, market players will focus on the release of the U.S. Department of Agriculture's world supply and demand report on Monday, May 11.

The agency will also produce data on 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.