Grain futures - Weekly outlook: August 19 - 23
Investing.com
Published Aug 18, 2013 10:05AM ET
Investors continued to focus on weather conditions and crop prospects in the U.S. Midwest and Great Plains-region.
On the Chicago Mercantile Exchange, corn futures for September delivery fell 1.5% on Friday to settle the week at USD4.7388 a bushel. Prices rallied 3.6% on Thursday to hit a two-week high of USD4.8487 a bushel.
On the week, the September corn contract added 1.9%.
The more actively-traded December contract ended Friday’s session down 1.85% at USD4.6340 a bushel, after climbing 3.75% on Thursday.
Thursday’s gains came after weather forecasting models pointed to hot and dry weather conditions across most parts of the U.S. Midwest during the next few days, fuelling concerns over potential U.S. crop damage.
But revised forecasts on Friday called for slightly wetter conditions that could support the Midwest crop's strong yield potential.
Meanwhile, soybeans for September delivery shed 0.45% on Friday to settle the week at USD12.8325 a bushel by close of trade. Prices of the oilseed rose 1.5% on Thursday to hit a three-week high of USD12.9400 a bushel.
The September soy contract rallied 4.95% on the week, the biggest advance since July 2012.
The more active November contract dipped 0.5% on Friday to end the week at USD12.5920 a bushel, after surging 2.15% on Thursday.
Soy’s losses were limited 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.
Elsewhere on the Chicago Board of Trade, wheat for September delivery declined 0.8% on Friday to settle the week at USD6.3150 a bushel. CBOT September wheat prices rose 1.1% on Thursday.
The September wheat contract ended the week with a modest loss of 0.35%.
The more active December contract settled 0.9% lower at USD6.4340 a bushel, after posting a gain of 1.05% on Thursday.
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.
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Written By: Investing.com
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