US corn and wheat futures slipped while soyabean futures edged higher on Friday ahead of a key government report updating the size of the US crops and providing supply and demand estimates, traders said. Soyabeans were underpinned by strong demand on the export front. Corn and wheat futures had a weak tone, with corn staking out a fresh three-year low due to expectations for a record harvest.
"To say today's report is highly anticipated would be an understatement, almost as much as saying a bearish corn report is expected," Matt Zeller, director of marketing information at INTL FCStone, said in a note to clients. Analysts forecast the USDA will raise its estimate of the 2013 US corn harvest to a record and hike ending stocks to triple their year-earlier level. The report is due at 11 am CST (1700 GMT)
The estimates have taken on extra significance after the USDA cancelled its October report due to the government shutdown. At 9:55 am CST (1555 GMT), Chicago Board of Trade December corn futures were down 2 cents at $4.18-1/2 a bushel, matching the three-year low hit on Wednesday. Corn has not risen since October 29.
With the turnaround in corn supply already well flagged by forecasters, there was talk of a price rebound as investors start covering the record short position they have built up in the futures market. CBOT December wheat was down 1-1/4 cents at $6.51-3/4 a bushel, and CBOT January soyabeans were 4-1/2 cents higher at $12.71 a bushel. In another sign of swelling global supply, Brazil on Friday raised its official forecasts for its 2013/14 corn and soyabean harvests, with soya output seen at a record high.
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