Forexpros – Last week saw U.S. grain futures post heavy losses as a combination of concerns over the debt crisis in the euro zone and worries about a slowdown in demand for U.S. grain exports drove prices lower.
On the Chicago Mercantile Exchange, corn futures for December delivery traded at USD6.1112 per bushel by close of trade on Friday, tumbling 4.23% over the week. Earlier Friday, prices fell to as low as USD6.0162 a bushel, the lowest since October 11.
Agricultural commodities continued to be affected by outside influences on Friday as concerns over the fiscal health of Italy and Spain continued to weigh on sentiment, driving investors out of riskier assets.
Corn prices came under pressure after the U.S. Department of Agriculture said that corn exports inspected at U.S. ports in the week ended November 10 fell to a 13-month low of 208,100 tons. Corn export sales were down 17% from a week earlier and below estimates for 350,000 tons.
On Thursday, prices plunged nearly 4.1% as investors liquidated positions to raise cash after Spanish bond yields spiked to a euro-lifetime high at a government bond auction, fuelling fears that the region’s debt crisis was worsening.
Elsewhere on the Chicago Board of Trade, wheat for December delivery retreated 3.73% over the week to settle at USD5.9662 a bushel on Friday.
Earlier Friday, prices fell to as low as USD5.8662 a bushel, the lowest since July 1 after USDA data showed that U.S. wheat export sales totaled 334,600 tonnes in the preceding week, falling short of expectations for 400,000 tonnes.
Meanwhile, Russian’s Agriculture Ministry said Friday that the nation’s farmers harvested 59.4 million tonnes of wheat as of November 16, compared to 43.5 million tonnes harvested during the same week a year earlier.
Russia is a major wheat exporter and competes with the U.S. for business on the global market. Large Russian crop prospects could weigh on demand for U.S. supplies, which is the world’s third largest wheat producer and biggest exporter.
Elsewhere, soybeans for January delivery slumped 0.52% on the week to settle at USD11.7212 a bushel by close of trade Friday.
Prices fell to as low as USD11.5288 a bushel, the lowest since October 7, before rebounding modestly after the USDA said that U.S. soybean export sales rose 24% from a week earlier to 751,200 tonnes.
China bought approximately 420,000 tons of U.S. soybeans last week, as the country boosted purchases to rebuild state inventories. China is the world’s largest soybean consumer.
In the week ahead, investors will be keeping a close eye on developments within the euro zone. Meanwhile, the USDA’s weekly report on U.S. crop progress scheduled for Monday will also be in focus.
Corn is the biggest U.S. crop, valued at USD66.7 billion in 2010, followed by soybeans at USD38.9 billion, government figures show. Wheat was fourth at USD13 billion, behind hay.
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