PARIS/SINGAPORE: Chicago corn was little changed on Friday, pausing after a steep rebound a day earlier as the market weighed up strong Chinese demand against favourable US growing conditions.
Wheat and soybeans edged down after tracking the corn rally on Thursday.
Market participants were also adjusting positions in the run-up to a US holiday weekend with markets closed on Monday.
The most active corn contract on the Chicago Board of Trade (CBOT) was up 0.3% at $6.66-1/4 a bushel by 1159 GMT after climbing 6.4% on Thursday.
New-crop December corn lost 0.3%.
The US Department of Agriculture (USDA) on Thursday confirmed more than 5.6 million tonnes in new-crop corn sales to China last week while not showing large-scale cancellations of old-crop corn purchases by China, as rumoured this week.
Recent Chinese buying of US corn has put the focus back on tight global supplies after Chicago prices eased to a one-month low this week on good crop conditions in the US Midwest.
The International Grains Council (IGC) on Thursday raised its forecast for global corn output in the 2021/22 season, as high prices encourage more planting, but saw consumption outstripping production.
"The IGC is sticking with its prediction ... that the corn market will see its fifth deficit in succession," Commerzbank said in a note.
China has loomed large in the corn market as traders have assessed rumours about import purchases and policy steps to curb commodity prices and use other crops in livestock feed.
"China has been snapping up US corn cargoes, but its future purchases will depend on domestic production and demand," said one Singapore-based grains trader.
CBOT wheat was down 0.4% at $6.73-1/4 a bushel while soybeans were 0.2% lower at $15.34-3/4 a bushel.
Argentina's 2020/21 soybean crop is expected at 43.5 million tonnes, the Buenos Aires Grains Exchange said, citing better than expected crop yields as it increased a previous 43 million tonne estimate.
Wheat traders were awaiting the outcome of a large import tender being held by Saudi Arabia, with results expected on Monday.