Grain futures - weekly outlook: May 4 - 8

Investing.com - U.S. corn futures fell to the lowest level in nearly six months on Friday, amid indications of rapid planting progress in the U.S. Midwest.

On the Chicago Mercantile Exchange, US corn for July delivery hit a session low of $3.6060 a bushel, a level not seen since November 5, before closing at $3.6300, down 3.2 cents, or 0.89%.

For the week, the July corn contract lost 5.76 cents, or 0.41%, the second straight weekly decline, as forecasts for drier weather across the Midwest was expected to further aid planting of the crop.

According to the U.S. Department of Agriculture, approximately 19% of the corn crop was planted as of April 26, up from just 9% in the preceding week and above the 17% planted during the same week a year earlier.

Meanwhile, US wheat for July delivery dipped 0.53 cents, or 0.11%, to settle at $4.7388 a bushel on Friday. Wheat slumped to a contract-low of $4.6400 on Tuesday.

On the week, the July wheat contract dropped 14.5 cents, or 2.57%, the fourth consecutive weekly loss, as dry weather conditions in key U.S. wheat-growing states was expected to benefit crop conditions.

The USDA said that 55% of the spring wheat crop was planted as of April 26, up from 36% a week earlier. Only 17% of the crop was planted in the same week a year earlier, while the five-year average for this time of year is 29%.

The agency also said that the U.S. winter wheat crop was rated 42% good to excellent as of last week. Approximately 33% of the crop was in good to excellent condition in the same week a year earlier.

Elsewhere on the Chicago Board of Trade, US soybeans for July delivery tumbled 11.2 cents, or 1.15%, to end at $9.6460 a bushel after hitting an intraday low of $9.6120, the weakest level since April 16.

For the week, the July soybean contract shed 2.87 cents, or 0.45%, the first weekly decline in three weeks as optimism over the outlook for supplies in South America weighed.

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 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.