The most-active July cotton contract on ICE Futures US edged up 0.38 cent, or 0.4 percent, to settle at 86.41 cents per pound. The spot-contract was little changed from last week's close.

The Thomson Reuters-Jefferies CRB Index, a benchmark for global commodities, posted gains.

Global equities markets rose on speculation that the US Federal Reserve would begin to dial back its asset-buying program and as consumer sentiment rose to a near six-year high.

An improvement in consumer sentiment is often interpreted as bullish for rising demand for consumer goods, including apparel.

Trade buying was limited throughout the week.

"We're selling a little bit of cotton every day, but we're still a ways from where the majority of purchases would be. Mills are standing tight, waiting," said Sharon Johnson, a cotton specialist with Knight Futures.

Traders said that demand for US-grown cotton was limited because many Asian mills were covered for immediate need and might increase when spot futures sank to 83 cents a lb, making US prices more competitive with lower-priced origins.

Trading volumes were below average, at about 16,000 lots compared with a 30-day average of about 24,000 contracts, preliminary Thomson Reuters data showed.

Open interest continued its climb, totaling 185,465 lots on Thursday, and up 995 lots from the previous session, according to ICE data. That was the highest level since mid-March.

Speculators increased a net long position in cotton futures and options in the week to May 14 to the highest since early April, US government data showed.

In March, the noncommercial dealers boosted their bullish bets in cotton to the highest level since 2008 in March, pushing prices to a first-quarter rally of about 18 percent.

Prices have fallen from a one-year high of nearly 94 cents reached in mid-March as speculators have reduced their bullish bet on commodities, including cotton, and moved into equities.

Dealers eyed crop progress data from the US Department of Agriculture due on Monday, expected to show an increase in plantings in the southeast and Mississippi Delta growing regions as unfavorable wet weather cleared eased.

Certified stocks totaled more than 500,000 bales, according to exchange data, down from the previous session but still near the highest levels since June 2010.

Even with the hefty exchange supplies, cotton bulls have pointed to steady demand from China, the world's largest textile market, and tightening stocks outside the top consumer.

Beijing began building its stocks in 2011, paying above global prices to support farmers.

Now, China is forecast to hold about two-thirds of a record global surplus in its stocks by the end of the 2013/14 crop year through July 2014.

Soybeans rose for a second session, with the benchmark July contract reaching a two-month high on tight US supplies and a firm cash market.

Wheat fell for a third day in a row on technical selling and crop-friendly rains in key wheat growing areas of the United States, Australia and the Black Sea.

At the Chicago Board of Trade, July corn settled up 11-1/4 cents at $6.52-3/4 per bushel. July soybeans ended up 21 cents at $14.48-1/2 per bushel after reaching $14.50, the contract's highest level since March 12.

Cash markets have been strong, with farmers reluctant to sell the last of their 2012 corn and soybeans because planting delays have raised concern about prospects for the 2013 crop.

Weather in the US Midwest improved this week and producers seized the opportunity to catch up with fieldwork.

"Farmers are busy in the fields and also they know planting is behind schedule and this could affect acreage or production, so they're in no hurry to sell since prices could go up," said Shawn McCambridge, analyst for Jefferies Bache in Chicago.

Cash basis bids for corn in the US Midwest on Friday were surging at processors and ethanol plants amid strong profit margins, tight supplies and slow farmer sales, grain merchants said.

Mostly clear skies allowed US farmers to gain ground in corn planting after the slowest start in decades.

"They probably got quite a lot done," said Andy Karst, meteorologist for World Weather Inc. "There were only scattered showers this week, so many were able to work between showers."

Some observers expect seedings to be 50 to 60 percent complete by the end of this week, though that would still be a record slow pace for this point in the season.

As of Sunday, farmers had seeded 28 percent of their intended corn acres, up from 12 percent a week earlier but far behind the five-year average of 65 percent, the US Department of Agriculture (USDA) said in a weekly report.

USDA will update its weekly crop progress report on Monday afternoon.

Informa Economics, a private analytics firm, said planting delays probably prompted farmers in some areas, such as North Dakota and Minnesota, to switch from corn to soybeans.

In a note to clients on Friday, Informa projected US 2013 corn plantings at 96.827 million acres, below the USDA's current estimate of 97.3 million. Informa forecast US 2013 plantings at 78.286 million acres, above USDA's estimate for 77.1 million.

SOYBEAN EXPORTS

Ongoing export sales help support soybean futures. The USDA on Friday said private exporters reported sales of 120,000 tonnes of US soybeans to China for 2013/14 delivery and 138,000 tonnes of US soybeans to an unknown destination, including 18,000 tonnes for 2012/13.

China is the world's largest buyer of soybeans, and the country continues to buy from the United States rather than South America despite abundant supplies in the Southern Hemisphere. Shipping snarls at ports have helped limit sales of soybeans from Brazil, which is projected to surpass the United States as the world's largest soy producer this year.

Brazil's congress approved legislation on Thursday that opens state-owned ports to private investment and lifts restrictions on the building of private ports in a bid to eliminate serious bottlenecks strangling the country's export growth.

WHEAT FALLS, BUCKING FIRM TREND

The gains in corn and soy helped underpin wheat, but that market faltered as milder weather in the US Midwest soft red winter wheat region boosted crop growth and development.

"I think the big thing in wheat are the rains in the Black Sea region. It was getting very dry and these are timely rains for them," a trader said.

Additional pressure stemmed from a stronger dollar, which makes products priced in US dollars more expensive for overseas buyers.

Data on Friday showed that copper in warehouses registered by the Shanghai Futures Exchange fell by 4,713 tonnes or 2.4 percent over the past week, bringing the total decline since the start of April to nearly a quarter.

There have also been other signs of demand by Chinese industry recently.

"We have anecdotal evidence that stocks at bonded warehouses in China are declining and spot premiums in China are up, so those are also positive trends," said analyst Andrey Kryuchenkov at VTB Capital in London. "LME copper will trade on expectations on what is going to happen in China."

Three-month copper on the London Metal Exchange climbed 0.66 percent to $7,328 a tonne at 0410 GMT, after opening at a session low of $7,234 and following a gain on Thursday.

Copper was also boosted by news the Democratic Republic of Congo (DRC) expects its ban on the export of copper and cobalt concentrates to come into full force by July or August,

In the US meanwhile, May consumer sentiment rose to its highest in nearly six years, while a gauge of future US economic activity in April rose to its highest in nearly five years.

Copper is down 0.6 percent for the week so far however, after falling to a 1-1/2-week low of $7,101 on Wednesday.

Investors are cautious, however, since the positive trends in China have failed to translate into stock draws on the LME. LME copper stocks which rose again on Friday, have climbed 10 percent since early April.

Gains on the LME were also capped on Friday after the dollar rose against a basket of currencies, hovering near a 10-month high, and making dollar-priced commodities more expensive for buyers outside the United States.

There was also concern about economic growth in China after the country's top leaders agreed that reforms were more important than stimulus.

China accounts for around 40 percent of global copper consumption and its imports of the metal have fallen this year as the economy recovers at a modest pace, driving copper prices down by nearly 8 percent so far in 2013.

Investors were also concerned that some Chinese lenders have stopped funding smaller copper importers, which could lift international supplies and pressure prices further.

"Given the slightly weaker growth we are expecting out of China that means demand will come off and there's potential for disappointment in copper imports in May with financing deals being curbed," said Natalie Rampono, commodity strategist at Australia and New Zealand Banking Group.

The most traded September copper contract on the Shanghai Futures Exchange closed up 1.8 percent at 52,980 yuan ($8,600) a tonne after falling for the past three sessions.

Lead rose 0.85 percent to $2,010 per tonne, as LME stocks fell again, bringing the total decline since early December to 34 percent.

"Macro risks aside, we believe the fundamental picture offers limited downside risk to lead prices in the near term," analyst Gayle Berry at Barclays in London said in a note.

"We believe these (falling stocks) reflect a tightening in fundamentals due to the constraint on supply dynamic from lower prices."

Traders said the fall below $1,400 in the previous session triggered heavy selling and that the yellow metal might retest two-year lows of $1,321.35 touched on April 16, when it recorded the worst daily loss for 30 years.

"Bullion's price break below the psychological $1,400 an ounce level may introduce additional near-term pressure on gold. However, physical bullion demand is likely to pick up further, given the price drop, to help stem potential losses," said James Steel, chief precious metals analyst at HSBC.

Spot gold was down 0.4 percent at $1,386.05 by 5:28 p.m. EDT (2128 GMT).

US gold for June delivery settled down $9.30 at $1,386.90 an ounce.

Rallying Wall Street stock indexes have hurt bullion's appeal as an alternative investment this year, leading to hefty outflows from gold-backed exchange traded funds.

The largest gold ETF, the SPDR Gold Trust, reported a further 4.5 tonne-drop in its holdings on Wednesday to 1,047.14 tonnes - the lowest since March 2009.

"We're seeing some of the pension funds selling via the ETFs, which is a bit of a worrying sign," said Standard Chartered analyst Daniel Smith.

Soros Fund Management LLC joined funds including Northern Trust and BlackRock in lowering its investment in the SPDR Gold Trust in the first three months of the year, a SEC filing showed on Wednesday.

Gold investment nearly halved in the first quarter as a brighter view of the US economy prompted investors in the West to favor assets such as stocks over bullion, the World Gold Council said on Thursday.

In the key grains market of Rosario, soy traded firm at 1,690-1,730 pesos ($323-$331) per tonne, compared with 1,711 pesos on Wednesday, sustained by gains in US soy futures.

Trade volume shrank to a paltry 5,000 tonnes from about 15,000 tonnes previously as farmers held out for higher prices, local traders said.

Soybean futures on the Chicago Board of Trade rose on Thursday, with the front July contract touching a 6-1/2-week high on tight US supplies and a strong cash market.

In the Argentine grains port of Quequen, where no official price was listed for Wednesday, soy closed at 1,660 pesos per tonne. In Bahia Blanca, soy rose 20 pesos to end at 1,710 pesos per tonne.

Argentina's 2013-14 wheat area is forecast at 3.9 million hectares, the Buenos Aires Grains Exchange said in its weekly report on Thursday, unchanged from its previous forecast for the upcoming season.

Three-month copper on the London Metal Exchange closed at $7,280 a tonne, up from $7,198 on Wednesday.

It is on track for a 2 percent fall this week and a fall of 9 percent so far this year.

Further weakness could lie ahead for the metal used in power and construction as buying activity among fund managers had abated, and concerns remained about the outlook for demand from China, which accounts for 40 percent of global copper demand.

"CTA short covering has dissipated and that was basically giving bid support in the market and the CTAs are now net sellers," said George Adcock, analyst at Marex Spectron, referring to commodity trading advisers.

The dollar fell against the euro and a basket of currencies after reports on US housing, labour and regional business conditions pointed to weakness in the economy.

A weak dollar makes commodities priced in the US unit cheaper for holders of other currencies.

"There does not seem to be any kind of spark to lift metals higher, at least for now. One possible trigger could come out of Europe if and when policymakers indicate that they may consider policies that would stimulate more growth," said Ed Meir, analyst at INTL FCStone.

In remarks published late on Wednesday, China's vice-premier said the country's demand for commodities had weakened, and that China must "strictly prohibit" further expansion of bloated industrial sectors.

In Europe, falling prices in Germany and France pulled euro zone consumer inflation to a three-year low in April while imports fell 10 percent in March, as new data showed the depth of the bloc's downturn.

Overall, all commodities are under pressure. This was reflected in reports this week that showed global investment banks suffered another bruising decline in commodity trading in the first three months of this year.

"The trend has been down for copper. I still feel we've got further downside to come because of the trend of weak global macro data coming through," said Tim Radford, global analyst at Sydney-based advisor Rivkin.

Tin ended at $20,955 from $20,755 at the close on Wednesday and lead, untraded at the close, was bid at $1,993 from $1,970.

Nickel closed at $14,900 from $14,905, zinc at $1,832.50 from $1,823 and aluminium ended at $1,852 from $1,840.

November milling wheat on the Paris futures market closed down 1.50 euros or 0.71 percent at 208.75 euros a tonne.

The November contract on London's feed wheat futures fell below 180 pounds per tonne for the first time since May 2.

"The market is treading water," a French cash broker said. "People are torn between weather risks and the outlook for bigger supplies next season."

Operators are continuing to assess planting in the United States, where rain-delayed field work is expected to pick up this week, and the impact of dry weather in Russia and Ukraine.

Chicago wheat was 1.4 percent lower on Thursday after sliding by more than 2 percent at Wednesday's close on a strong dollar and lacklustre exports of US grain.

Dry and hot weather will persist in Russia's key agricultural regions, Russia's state forecaster said on Thursday, warning of a danger of wildfires in coming days.

Russian wheat exports in 2013/14 may not exceed this season's level as the country replenishes low stocks with a crop pegged at 51.4 million tonnes, below the 56 million projected in US government forecasts, grains consultancy Agritel said on Thursday.

The European Union this week granted export licences for 213,000 tonnes of soft wheat, taking the total this season to 17.4 million tonnes, up from 11.8 million tonnes by the same stage in 2011/12.

French farm office FranceAgriMer's grain council said on Thursday that it opposed some of the NYSE Liffe's proposals to change some parameters of its milling wheat futures, such as the delivery points and quality criteria, echoing positions expressed by market participants.

However, FranceAgriMer agreed to a suggested change in calendar to close the gap between the May and November contracts. It proposes to have four contracts with a first delivery in September or October, a second in December, a third in March and a last one in May or June.

The most-active July cotton contract on ICE Futures US fell 0.42 cent, or 0.5 percent, to settle at 86.03 cents per pound, after mixed trading throughout the session.

With US plantings picking up, trade hedging added selling pressure and outweighed limited mill buying, merchants said.

"Mill business was more active today than in the last week, But we saw some hedging pressure" as producers began to forward sell the new crop in the United States and other countries, said Peter Egli, director of risk management for Plexus Cotton Ltd, a medium-sized British-based merchant.

Planting picked up as weather improved in the Mississippi Delta and into the Southeast United States and eased concerns over delays in the regions, dealers said.

Cotton felt pressure from other falling commodities markets as the Thomson Reuters-Jefferies CRB, a benchmark for global commodities, edged down on losses in agricultural markets and in gold, and US financial markets were little changed.

Open interest reached 184,470 lots on Wednesday, up by 1,198 lots from the previous session, as prices fell, interpreted as new short positions entering the market.

US government export data on Thursday showed a sharp decrease in weekly export sales from previous weeks in the week ending May 9.

Cotton failed to register steep losses on the data, though, with some traders pointing to an increase in sales to China, as the country continues to build its state reserves despite a decrease in imports seen in April.

Beijing began building its stocks in 2011, paying above global prices to support farmers.

The world's largest textile market is forecast to hold about two-thirds of record global inventories in 2013/14.

The cotton bulls note that despite a huge global surplus, inventories outside of China have been tightening.

Prior to a price rally during the first quarter of about 18 percent, cotton registered two years of losses as lower-priced synthetic fibers eroded demand and global stocks grew.

Trading volume was light on Thursday, at fewer than 11,000 contracts compared with a 30-day average of more than 24,000, preliminary Thomson Reuters data showed.

Wheat fell on technical selling and seasonal pressure as the US harvest neared, with the Chicago Board of Trade July contract hitting a six-week low.

At the CBOT, July corn ended down 9-1/4 cents at $6.41-1/2 per bushel after finding support at its 20-day moving average of $6.40-1/4. July soybeans settled up 14-3/4 cents at $14.27-1/2 after reaching $14.31, the contract's highest level since March 28.

Trade was thin, and rumors swirled of a hedge fund buying soybeans and selling corn.

"Supposedly there was a big hedge fund in London that was buying beans and selling corn on ratio spreads, big time," said Charlie Sernatinger with ED&F Man Capital in Chicago.

Others cited favorable US planting weather for corn. Farmers in the Midwest have been planting frantically this week, taking advantage of mostly sunny skies to catch up after a historically slow start this spring.

"Finally we will see some solid progress on corn planting this week, before it gets wet again over the weekend and pushes the farmers out of fields," said Joyce Liu, an analyst at Phillip Futures.

Rains this weekend and early next week are likely to stall their progress but also add beneficial soil moisture.

"Today's planting delays become tomorrow's moisture and will help the crop get established," said Jim Gerlach, president of A/C Trading in Fowler, Indiana.

Traders also appeared to be taking profits in long July/short December spread positions in corn following the expiration of the CBOT May contract this week, Gerlach said.

Weekly export sales data for corn was disappointing, adding pressure on prices. The US Department of Agriculture reported corn export sales for the 2012/13 and 2013/14 marketing years at 258,500 tonnes, a 10-week low.

Rallying stocks have also hurt bullion's appeal as an alternative investment this year, leading funds to generally liquidate their gold positions.

Gold fell as much as 1.6 percent to a low of $1,369.29 an ounce in earlier trade. It pared some losses but remained down 1.2 percent at $1,375.46 at 1118 GMT.

US gold for June delivery was down 1.5 percent at $1,374.30 an ounce, having hit a low of $1,368.

Traders said the fall below the psychologically significant $1,400 level in the previous session triggered heavy selling and that the metal might re-test two-year lows of $1,321.35 hit on April 16, when it recorded the worst daily loss for 30 years.

A sixth consecutive daily fall for bullion would be its longest run of losses since March 2009. It has fallen about 16 percent in 2013 after gaining for the past 12 years.

"It is possible that we will see further selling. This fall is reminiscent of what we saw about a month ago during a sort of flash crash in gold," Mitsubishi analyst Jonathan Butler said.

"Investors appear to be tired of gold as a safe haven as they anticipate the end of those loose monetary policies, possibly by the end of this year or maybe early next year, while there also seems to be a return of risk appetite."

The dollar was near a six-week high against the euro and a 4-1/2 year peak against the yen on prospects for more monetary easing in the euro zone and reduced asset buying in the United States, which would undermine the argument for holding gold as a hedge against inflation.

A stronger greenback makes dollar-denominated commodities more expensive for holders of other currencies.

US DATA

The market is now turning its attention towards US inflation data, later in the day, as well as the country's weekly jobless claims.

Gold investment nearly halved in the first quarter as a brighter view of the US economy prompted investors in the West to favour assets such as stocks over bullion, the World Gold Council said on Thursday.

Soros Fund Management LLC joined funds including Northern Trust and BlackRock in lowering its investment in the SPDR Gold Trust, the world's largest gold-backed ETF, in the first three months of the year, a SEC filing showed.

Holdings in the SPDR fund fell 0.43 percent to 1,047.14 tonnes on Wednesday, the lowest since March 2009.

However, lower gold prices have attracted physical buying in China. The world's second-largest consumer after India bought a large amount of gold on Thursday.

In other precious metals, silver fell 1.1 percent to $22.32 an ounce, having earlier touched its lowest level since April 16 at $22.09. The metal has fallen 6.7 percent so far this week, and is set for its worst weekly performance in a month.

Platinum fell 1.1 percent to $1,469.74 an ounce, but its premium over gold reached its highest level since August 2011 as South Africa's production worries continue.

Palladium dropped 0.6 percent to $720.25 an ounce.