US wheat futures extended losses on Friday after a sharp decline in the previous session on fears of a global recession and weakening demand for commodities. Chicago Board of Trade December wheat fell 0.50 cent to $5.22 per bushel by 0030 GMT, while corn for delivery in December rose 2.75 cents to $3.80-3/4 per bushel.
Wheat dropped 14-3/4 cents and corn lost 12-1/4 cents in the overnight US trade. November soybeans lost 1.25 cents to $8.98-1/4 per bushel after rising 4-3/4 cents in the last session. Corn prices have been hard hit this week, falling more than 5 percent compared with declines of 2.7 percent in wheat and 2.9 percent in soybeans.
US crude futures eased further following a nearly 7 percent fall to a 19-month low the previous day, as fears of a spreading economic downturn affected demand and pushed down crude prices. Corn, which is made into ethanol in the United States and other corn producing nations, often takes its direction from crude oil, which is down more than 11 percent this week.
The US Agriculture Department will release its monthly crop report on Monday. On average, analysts expect the USDA to increase its estimate of the 2008 US corn crop to 12.075 billion bushel, from 12.033 billion in the October 28 report.
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