Grain futures - Weekly outlook: August 12 - 16

Investing.com - U.S. grain prices ended Friday’s session broadly lower, with corn and wheat prices tumbling to multi-month lows as improving U.S. weather and crop prospects in the U.S. Midwest and Great Plains-region weighed.

Investors also readjusted positions ahead of Monday’s closely-watched monthly U.S. supply and demand report, which is expected to show record production prospects for U.S. corn and soybeans this season.

On the Chicago Mercantile Exchange, corn futures for September delivery fell 2% on Friday to settle the week at USD4.6475 a bushel.

Prices hit a session low of USD4.6450 a bushel earlier in the day, the weakest level since October 4, 2010.

On the week, the September corn contract lost 2.36%.

Weather forecasting models continued to point to near-perfect temperatures across most parts of the U.S. Midwest during the next few days, easing concerns over potential U.S. crop damage.

The USDA said nearly 64% of the U.S. corn crop was rated in ‘good’ to ‘excellent’ condition as of last week, significantly higher than the 23% recorded in the same week a year earlier.

Nearly 11% of the corn crop was in ‘poor’ to ‘very poor’ condition, compared to 50% recorded in the same week a year earlier.

Meanwhile, wheat for September delivery declined 1.25% on Friday to settle the week at USD6.3363 a bushel. CBOT wheat prices hit a session low of USD6.3063 a bushel earlier Friday, the cheapest level since June 18, 2012.

The September wheat contract ended the week with a loss of 4%.

The USDA said that nearly 87% of the winter-wheat crop was harvested as of last week, up from 81% a week earlier and above the five-year average of 86% for this time of year.

Elsewhere on the Chicago Board of Trade, soybeans for September delivery shed 0.65% on Friday to settle the week at USD12.1963 a bushel by close of trade.

Prices of the oilseed fell to USD11.8687 a bushel on Monday, the weakest level since January 31, 2012 amid improving U.S. weather and crop prospects in the U.S. Midwest and Great Plains-region.

According to the U.S. Department of Agriculture, approximately 79% of the U.S. soy crop bloomed as of last week, up from 65% in the preceding week.

The report also showed that nearly 64% of the soy crop was in ‘good’ to ‘excellent’ condition as of last week, significantly higher than the 29% recorded in the same week a year earlier.

Despite Friday’s downbeat performance, the September contract added 0.63% over the week, amid indications of strong demand for U.S. supplies from China.

China is the world’s largest soybean consumer, accounting for nearly 60% of global trade of the grain.

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.