By Doug Cameron
U.S. grain and oilseed futures all closed higher Friday to register gains for the week, led by wheat's advance on the quality of bulging global stocks.
Chicago soft red wheat futures led the advance to close up 1.2% for the session and 1% for the week. Corn settled up 1% and 1.6% for the week, with front-month soybean future closing up 0.4% on the day while advancing 1% this week. All ended up short of session highs after climbing steadily through the day.
The downward pressure of the ever-rising dollar this week was countered by export sales and early signs over next year's planting intentions as wheat and corn are expected to give way to more soybeans in the U.S.
Analysts said all three remained within trading ranges, though gained support when some poorly-timed short bets were exited.
While wheat stocks remain high, some concerns remain about the quality for baking products, with traders citing Russia as the latest market to suffer issues. "There is probably going to be some tightness in quality wheat, but total stocks remain robust," said Doug Bergman at RCM Alternatives.
Dry soils across the Plains helped lift Chicago's December soft red wheat contract 4 cents to $4.08 a bushel. Hard red wheat, which accounts for two thirds of the nation's winter crop and is hence more susceptible to such conditions, ended up 4 3/4 cents at $4.13 1/2.
Winter wheat planting is almost complete, and blizzard conditions are expected over parts of the northern Plains and Midwest over the weekend, with 59% of the crop reported to be in good to excellent condition during this week's government report which will be updated Monday.
Wheat also drew strengththis week from expectations that U.S. farmers will plant less of the crop next year because of weak prices and the global glut.
Trader said Informa, a private forecaster, cut its forecast for planted wheat acres next year to 33.761 million acres from 35.421 million. Informa trimmed its estimate for corn acres and bumped up beans slightly, said traders.
The U.S. dollar index gained another 0.3% Friday to take its advance for the week above 2%, pressuring the competitiveness of exports just as South American crops start to figure higher in global trade.
Another China sale helped January soybeans 4 1/4 cents at $9.93 ¿.
Corn exports in the latest U.S. Department of Agriculture weekly update on Thursday easily topped analysts' expectations, with wheat and soybean shipments both at the upper end of trade forecasts.
The December corn contract ended up 3/12 cents at $3.45 1/2 cents.
Write to Doug Cameron at firstname.lastname@example.org
(END) Dow Jones Newswires
November 18, 2016 15:17 ET (20:17 GMT)
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