US corn futures rose 3.4 percent on Friday on surging exports, particularly to China, and concerns that hot weather forecast for the Corn Belt could threaten the developing crop as it enters its crucial pollination stage. Wheat also rallied as funds covered short positions. Soyabeans were higher too, supported by the gains in corn as well as worries that heat might damage the crop this summer.
The gains capped a week that saw wheat break a string of five straight losing weeks and corn rebound from a more than 20 percent slump, but trading volumes were the lowest of the year as investors remained uncertain about the size of crops and fretted over the state of the US economy.
"We are going to hit time periods when we see volumes drop considerably because people are just uncertain which way this market is going to go," said Shawn McCambridge, grains analyst with Jefferies Bache. Corn was up 4.9 percent and soyabeans gained 2.2 percent, the best weekly performance for both of those markets in seven weeks.
Trading volumes were light on Friday as many investors shrugged at this week's gains and kept money on the sidelines due to uncertainty about the size of this year's crops as well as worries about the economy. Chicago Board of Trade July corn futures settled up 22-1/4 cents at $6.72-1/4 a bushel. The new-crop December contract was up 21-1/2 cents at $6.37 a bushel.
CBOT July wheat was up 26 cents at $6.50-1/2 a bushel. Traders covering short positions in CBOT wheat also were selling off long positions in Kansas City Board of Trade contracts as they unwound spreads, traders said. CBOT July soyabeans were 6-1/2 cents higher at $13.52 a bushel. The rallies in wheat were failing to attract much new money into the market. Investors were waiting to see results from USDA's supply and demand report next Tuesday before returning to grains, said Mike Zuzolo, president of Global Commodity Analytics & Consulting.
US export sales of corn totalled 1.49 million tonnes in the latest reporting week, a three-month high and above forecasts for 850,000 to 1 million tonnes. USDA said in its report on Friday morning that 250,600 tonnes of the export sales were for an unknown destination, which traders said was evidence of more Chinese buying.