Investing.com - U.S. grain futures ended the week mixed on Friday, with soybean futures rallying to a three-month high amid indications of growing demand for U.S. supplies, while wheat futures came under pressure after Russia announced it would not cap grain exports in the current marketing year.
On the Chicago Mercantile Exchange, soybeans for March delivery settled at USD12.3288 a bushel by close of trade Friday. On the week, prices gained 1.52%, the third consecutive weekly advance.
Soy prices rose to the highest level since late October on Friday, after closely-watch industry research group Informa Economics lowered its forecast for soy production in Argentina and Brazil, lifting demand expectations for U.S. supplies.
According to the group, Argentina's soybean crop was now expected to total 46.5 million tons, down from previous estimate of 51 million tons, and slashed its estimate for Brazil by 2 million tons from a previous estimate to 70 million.
Argentina and Brazil are major soybean exporters and compete with the U.S. for business on the global market. A downbeat crop outlook in the South American countries would likely mean greater demand for U.S. supplies.
Export shipments of U.S. soybeans last week were above 1 million tonnes for the third week in a row, U.S. Agriculture Department data showed on Thursday.
Meanwhile, wheat for March delivery settled at USD6.6038 a bushel by close of trade on Friday, gaining 2.08% on the week.
Wheat prices climbed to a four-month high of USD6.8325 on Wednesday as sub-zero temperatures in Russia fuelled speculation over a possible grain export ban from the country.
However, prices gave back nearly 2% in the final two sessions of the week after Russia’s First Deputy Prime Minister Viktor Zubkov said on Friday that, “Russia’s government doesn’t see grounds for any kind of grain export restrictions in April.”
The country also said that it now expected to export 27 million metric tons of grains in the current marketing season, after previously stating that it would cap exports at 24 million to 25 million tonnes to ensure ample domestic supplies. Shipments so far this season are at 19.6 million tons, according to Friday’s statement.
Russia’s grain crop is estimated at 93.9 million tons, Zubkov said, compared with his October forecast for output of between 90 million to 92 million tons. The country is forecast to become the world’s third largest wheat exporter in the 2011-12 marketing year, trailing only the U.S. and Australia, according to the USDA.
Wheat’s losses were limited amid concerns over crops in Ukraine, the second biggest grain producer in the Black Sea region after Russia.
The country’s national weather center said Friday that local farmers will need to replant at least half of its winter grains after freezing weather this week destroyed plants.
Elsewhere on the Chicago Board of Trade, corn futures for March delivery settled at USD6.4338 a bushel by close of trade on Friday, adding 0.58% on the week.
Corn prices edged higher on Friday as export demand for U.S. corn remained strong in the previous week. U.S. farmers sold 974,900 tonnes of corn for export delivery last week, above estimates for sales in a range of 700,000 to 950,000 tonnes.
According to the USDA data, the weekly export figures included a 50,000-tonne sale of U.S. corn to China for the 2012-13 marketing season that will begin in September, fuelling speculation that Chinese importers were switching to U.S. supplies instead of purchasing South American corn.
The U.S. produced 38% of the world's corn last year, making it the both world’s largest corn producing nation and the largest exporter of the grain, while China is the world’s second largest corn consumer.
Wall Street investment bank Goldman Sachs raised its three-and six-month price forecasts to USD6.90 per bushel, from USD6.30 previously, citing tight U.S. inventories and lower South American crop forecasts.
Meanwhile, traders continued to monitor weather conditions in major grain-growing regions in South America. According to agricultural meteorologists a shift to more crop-friendly weather has occurred in Argentina in recent days, with most parts of the country receiving beneficial rains in the past two days.
Traders have been focusing on weather conditions and crop prospects in Southern Hemisphere countries in recent weeks, as most Northern Hemisphere grain crops have been harvested by now.
The heat of the Southern Hemisphere's summer has been compounded by La Niña, a phenomenon in which tropical waters in the Pacific Ocean turn unusually cold.
Corn is the biggest U.S. crop, valued at USD66.7 billion in 2010, followed by soybeans at USD38.9 billion, government figures show. Wheat was fourth at USD13 billion, behind hay.
In the week ahead, grain traders will continue to monitor South America's corn and soybean crop and how La Nina weather patterns will affect yields. Russian and Ukraine winter-wheat crop conditions will also be in focus.
On the Chicago Mercantile Exchange, soybeans for March delivery settled at USD12.3288 a bushel by close of trade Friday. On the week, prices gained 1.52%, the third consecutive weekly advance.
Soy prices rose to the highest level since late October on Friday, after closely-watch industry research group Informa Economics lowered its forecast for soy production in Argentina and Brazil, lifting demand expectations for U.S. supplies.
According to the group, Argentina's soybean crop was now expected to total 46.5 million tons, down from previous estimate of 51 million tons, and slashed its estimate for Brazil by 2 million tons from a previous estimate to 70 million.
Argentina and Brazil are major soybean exporters and compete with the U.S. for business on the global market. A downbeat crop outlook in the South American countries would likely mean greater demand for U.S. supplies.
Export shipments of U.S. soybeans last week were above 1 million tonnes for the third week in a row, U.S. Agriculture Department data showed on Thursday.
Meanwhile, wheat for March delivery settled at USD6.6038 a bushel by close of trade on Friday, gaining 2.08% on the week.
Wheat prices climbed to a four-month high of USD6.8325 on Wednesday as sub-zero temperatures in Russia fuelled speculation over a possible grain export ban from the country.
However, prices gave back nearly 2% in the final two sessions of the week after Russia’s First Deputy Prime Minister Viktor Zubkov said on Friday that, “Russia’s government doesn’t see grounds for any kind of grain export restrictions in April.”
The country also said that it now expected to export 27 million metric tons of grains in the current marketing season, after previously stating that it would cap exports at 24 million to 25 million tonnes to ensure ample domestic supplies. Shipments so far this season are at 19.6 million tons, according to Friday’s statement.
Russia’s grain crop is estimated at 93.9 million tons, Zubkov said, compared with his October forecast for output of between 90 million to 92 million tons. The country is forecast to become the world’s third largest wheat exporter in the 2011-12 marketing year, trailing only the U.S. and Australia, according to the USDA.
Wheat’s losses were limited amid concerns over crops in Ukraine, the second biggest grain producer in the Black Sea region after Russia.
The country’s national weather center said Friday that local farmers will need to replant at least half of its winter grains after freezing weather this week destroyed plants.
Elsewhere on the Chicago Board of Trade, corn futures for March delivery settled at USD6.4338 a bushel by close of trade on Friday, adding 0.58% on the week.
Corn prices edged higher on Friday as export demand for U.S. corn remained strong in the previous week. U.S. farmers sold 974,900 tonnes of corn for export delivery last week, above estimates for sales in a range of 700,000 to 950,000 tonnes.
According to the USDA data, the weekly export figures included a 50,000-tonne sale of U.S. corn to China for the 2012-13 marketing season that will begin in September, fuelling speculation that Chinese importers were switching to U.S. supplies instead of purchasing South American corn.
The U.S. produced 38% of the world's corn last year, making it the both world’s largest corn producing nation and the largest exporter of the grain, while China is the world’s second largest corn consumer.
Wall Street investment bank Goldman Sachs raised its three-and six-month price forecasts to USD6.90 per bushel, from USD6.30 previously, citing tight U.S. inventories and lower South American crop forecasts.
Meanwhile, traders continued to monitor weather conditions in major grain-growing regions in South America. According to agricultural meteorologists a shift to more crop-friendly weather has occurred in Argentina in recent days, with most parts of the country receiving beneficial rains in the past two days.
Traders have been focusing on weather conditions and crop prospects in Southern Hemisphere countries in recent weeks, as most Northern Hemisphere grain crops have been harvested by now.
The heat of the Southern Hemisphere's summer has been compounded by La Niña, a phenomenon in which tropical waters in the Pacific Ocean turn unusually cold.
Corn is the biggest U.S. crop, valued at USD66.7 billion in 2010, followed by soybeans at USD38.9 billion, government figures show. Wheat was fourth at USD13 billion, behind hay.
In the week ahead, grain traders will continue to monitor South America's corn and soybean crop and how La Nina weather patterns will affect yields. Russian and Ukraine winter-wheat crop conditions will also be in focus.