Chicago corn and wheat futures prices rose for a second straight session on Friday with short-covering ahead of the U.S. Labor Day holiday weekend, clawing back from multi-year lows reached this week.
Soybeans gained on a technical bounce, but posted a 1.5 percent weekly loss.
“People taking profits who were short the market don’t want to carry the positions into a long holiday weekend,” said Terry Reilly, senior commodity analyst at Futures International. “Some traders might be exiting short positions just in case something happens (to crops) over the weekend.”
The Chicago Board of Trade most active December corn contract advanced by 4-3/4 cents or 1.5 percent to $3.28-1/2 a bushel, and notched a 1.1 percent weekly gain.
September corn on Wednesday dropped to $3.01, the lowest nearby price in seven years.
Informa Economics, a private analytics firm, projected U.S. 2016 corn production at 15.300 billion bushels based on an average yield of 174.8 bushels per acre, two trade sources said.
Most-active December wheat gained 4-1/2 cents or 1.1 percent to $3.99-1/4 a bushel. The market has crept up from a 10-year low reached on Wednesday, but still lost 2 percent for the week.
“The low levels hit are encouraging American farmers not to sell, which may technically lead to a slight rebound in the short-term but without changing the underlying trend, which remains bearish in the absence of new elements,” French consultancy Agritel said.
Indian importers purchased around 52,000 tonnes of Ukrainian-origin wheat in past weeks as India increases its wheat imports after a poor crop, European traders said.
Japanese buying could help shore up wheat as well after the country on Thursday resumed buying U.S. white wheat after a halt following the discovery of genetically modified strains in some U.S. crops in July.
Most active November soybeans finished up 8-3/4 cents or 0.9 percent at $9.52-1/2 a bushel.
Informa forecast U.S. 2016 soybean production at 4.127 billion bushels with a yield of 49.5 bushels per acre, according to sources.