US new-crop corn futures rose on Friday and looked poised to record the biggest weekly gain in four months as a lower-than-expected official crop forecast supported prices. Soybean futures slipped, while wheat advanced. Corn was poised to record a weekly gain of nearly 2.5 percent, the biggest rally since April 4, drawing support from lower-than-expected US production and yield estimates issued by the US Department of Agriculture on Tuesday.
"Corn is enjoying a renaissance this week," said Sterling Smith, futures specialist at Citi in Chicago. "The slow summertime activity, combined with the USDA's modest hike in yields, is giving the market a brief boost." Chicago Board of Trade December corn futures were up 4-1/4 cents at $3.77-3/4 a bushel at 11 am CDT (1600 GMT). The new-crop contract has advanced for four consecutive sessions this week for the first time since February 12.
The gains will likely be short-lived, however, because US farmers are projected to harvest a record crop, traders said. Many analysts expect the USDA to increase its official yield estimate in the coming months due to favourable crop weather. The USDA, in a monthly report on Tuesday, put the US corn harvest at a record 14.032 billion bushels, below analysts' consensus estimate of 14.253 billion, and the soyabean crop at a record 3.82 billion bushels.
November soyabeans futures fell 3 cents to $10.53 a bushel. Soybeans hit a contract low in the previous session before closing up slightly. December wheat futures rose 11 cents to $5.63-3/4 a bushel. "Wheat is finding strength along with the rest of the grain space as some short-covering is being seen lifting values in quiet trade," Smith said.
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