Grain futures - Weekly outlook: March 18 - 22

Investing.com - U.S. grain futures ended Friday’s session mostly lower, with soybean prices falling to a four-week low amid concerns over diminishing demand for U.S. supplies.

On the Chicago Mercantile Exchange, soybeans for May delivery declined 0.65% Friday to settle at USD14.2638 a bushel by close of trade. On the week, the May soy contract lost 3.15%, the steepest weekly drop in ten weeks.

Soy prices came under pressure after the National Oilseed Processors Association said U.S. soy crushings fell to 136.3 million bushels in February, below trade forecasts for 142 million and well below the previous month's 158.2 million.

Soy traders also trimmed bet that prices will rise as market players feared expectations for a bumper crop in Brazil and Argentina could result in lower demand for U.S. supplies.

The U.S. Department of Agriculture said last week Brazil will harvest a record 83.5 million tonnes of soybeans this spring, on pace to pass the U.S. as the top producer for the first time.

Brazil and Argentina are major soy 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.

Elsewhere on the Chicago Board of Trade, corn futures for May delivery eased up 0.25% Friday to settle the week at USD7.1788 a bushel.

Earlier in the day, corn prices rose to a session high of USD7.1962 a bushel, the strongest level since February 8. On the week, the May corn contract tacked on 2%.

Corn prices continued to be supported by lingering concerns about global demand outstripping tight supplies.

Corn futures have been on an upward trend in recent sessions after the USDA said last week that U.S. stockpiles before the next harvest will total 632 million bushels, the lowest level in 17 years.

Meanwhile, wheat for May delivery dipped 0.1% on Friday to settle the week at USD7.2312 a bushel. Earlier in the day, the May contract rose to a session high of USD7.2488 a bushel, the strongest level since February 22.

The May wheat contract surged 3.7% on the week, the largest weekly gain in eight weeks.

Wheat prices have been well-supported in recent sessions as traders closed out bets prices would fall lower after slumping to an eight-month low of USD6.8125 a bushel on March 6.

Prices rallied on Thursday after weekly USDA export data showed that U.S. farmers last week sold 888,500 tonnes of wheat for the current marketing year and 198,500 tonnes for the next marketing year.

Combined sales were the largest for a single week since February 2011.

In the week ahead, corn and soybean traders will continue to pay close attention to weather forecasts for grain-growing regions in Brazil and Argentina, while wheat traders will monitor temperatures in the Great Plains-region.

Market players will also focus on the USDA’s weekly exports data on Thursday.

Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.