Breaking News

Grain futures - Weekly outlook: April 15 - 19

CommoditiesApr 14, 2013 07:14AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
Investing.com - U.S. grain futures ended Friday’s session broadly higher, with wheat and soybean prices rising to two-week highs amid indications of robust demand for U.S. supplies.

On the Chicago Mercantile Exchange, wheat for May delivery rallied 2.4% on Friday to settle the week at USD7.1412 a bushel. CBOT wheat rose to USD7.1588 a bushel earlier in the session, the strongest level since March 28.

The May wheat contract added 2.05% on the week, the second consecutive weekly advance.

Wheat’s gains accelerated sharply after prices broke firmly above key their 30-day moving and 40-day moving averages on Friday, triggering a flurry of automatic buy orders amid bullish chart signals.

Sentiment on the grain was boosted after the U.S. Department of Agriculture confirmed that China bought 360,000 tonnes of U.S. wheat for delivery in the 2013-14 marketing year, the largest purchase since January 2004.  

Investors also bought the grain amid concerns that adverse weather conditions in major wheat-growing states across the Great Plains-region will hurt the U.S. winter crop.

Wheat traders have been closely monitoring weather and crop conditions in the area, where prolonged dryness threatens dormant winter wheat crops.

Meanwhile, soybeans for May delivery added 0.8% Friday to settle at USD14.1325 a bushel by close of trade. CBOT soy prices rose to a session high of USD14.1888 a bushel earlier in the day, the strongest level since March 28.

On the week, the May soy contract advanced 3.6%, the biggest weekly gain since August, amid growing concerns over tight U.S. supplies.

Earlier in the week, the USDA left its forecast for domestic soybean stocks as of August 31 at 125 million bushels, the lowest since 2004.

Prices found additional support after the USDA said Friday that private exporters sold 110,000 metric tons of soybeans for delivery to unknown destinations during the 2013-14 marketing year.

Market participants commonly interpret listings of sales to "unknown destinations" as a sign of Chinese buying. China accounts for roughly 60% of world soybean imports and its purchases have a big impact on prices.

Elsewhere on the Chicago Board of Trade, corn futures for May delivery climbed 1% Friday to settle the week at USD6.5862 a bushel. Earlier in the session, CBOT corn prices rose to USD6.5962 a bushel.

On the week, the May corn contract rallied 4.5%, the biggest weekly gain since August, fueled by worries about tightening supplies as well.

The USDA said U.S. stockpiles before the next harvest will total 757 million bushels on August 31, below expectations for an increase to 836 million bushels.

Worries over cool and wet Midwest weather which could delay early-season corn planting also supported prices.

In the week ahead, corn and soybean traders will continue to pay close attention to weather forecasts for grain-growing regions in the U.S. Midwest, while wheat traders will monitor temperatures in the Great Plains-region.

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

Grain futures - Weekly outlook: April 15 - 19

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email