Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Grain futures - weekly outlook: July 21 - 25

CommoditiesJul 20, 2014 10:06AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
U.S. corn futures end the week at four-year low on supply outlook

Investing.com - U.S. corn futures plunged to a four-year low on Friday, as ongoing expectations for a record U.S. harvest continued to weigh.

On the Chicago Mercantile Exchange, U.S. corn for September delivery slumped to a session low of $3.7060 a bushel, the weakest level since July 2010, before settling at $3.7120, down 2.17%, or 8.2 cents.

On the week, the September corn contract lost 1.85%, or 7.0 cents.

The U.S. Department of Agriculture said earlier in the month that U.S. corn inventories at the end of August will total 1.246 billion bushels, up 8% from its forecast in June.

According to the agency, nearly 76% of the U.S. corn crop was rated “good” to “excellent” as of last week, the highest rating for this time of year since 1994.

Elsewhere on the Chicago Board of Trade, U.S. wheat for September delivery tumbled 3.42%, or 18.85 cents, on Friday to end the week at $5.3220 a bushel, as traders reassessed the geopolitical situation in Eastern Europe.

Despite Friday’s heavy losses, the September wheat contract rose 1.16%, or 6.2 cents, on the week.

Wheat spiked almost 2.5% on Thursday after a Malaysian Airlines passenger jet crashed in eastern Ukraine on Thursday. All 298 people on board were killed, with the U.S. blaming pro-Russian separatists for the act.

Moscow has denied involvement in the crash, which came a day after the U.S. announced a fresh round of sanctions against Russia for supporting separatists in east Ukraine.

The USDA projected that Russia and Ukraine will produce a combined 74 million tonnes of wheat in the 2013-14 marketing season and export a total of 26.5 million tonnes of the grain, representing 17% of world trade.

Prices of the grain fell to a four-year low of $5.2420 on July 14 after the USDA raised its outlook for global inventories at the end of the 2014-15 season to 189.54 million metric tons from the 188.61 million tons forecast last month.

Meanwhile, U.S. soybeans for August delivery inched up 0.17%, or 2.0 cents, on Friday to settle at $11.7660 a bushel by close of trade.

On the week, the August soybean contract lost 1.58%, or 19.0 cents.

The August soybean contract slumped to a two-and-a-half-year low $11.5320 on July 15 as indications of ample global supplies drove prices lower.

The USDA raised its forecast for the U.S. soybean harvest by 4.5% to a record 3.8 billion bushels earlier in the month. The agency also increased its forecast for soybean inventories by 12% to 140 million bushels.

According to the agency, approximately 72% of the U.S. soy crop was rated “good” to “excellent” as of last week, the best condition for mid-July in 20 years.

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.

Grain futures - weekly outlook: July 21 - 25
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other 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, don’t trash it.

  •           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. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. 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.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
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.
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?
 
Post
 
Replace the attached chart with a new chart ?
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
or
Sign up with Email