Chicago Board of Trade corn futures drifted lower on Thursday as traders squared positions ahead of a key US Department of Agriculture (USDA) crop report due on Friday.
The USDA report, scheduled for release at 11 a.m. CST (1700 GMT) on Friday, is expected to show a smaller 2019 US harvest, smaller South American corn crops and tighter US and global stocks.
Crop conditions are favorable in much of Brazil and Argentina and the key Brazilian state of Rio Grande do Sul, which has been dry, is forecast to receive rain in the coming days, forecasters said.
Traders are awaiting details on the Phase 1 trade agreement Washington and Beijing struck last month that is expected to increase Chinese buying of US farm goods. Recent unexpected policy moves by Beijing have dimmed hopes that China would reach a lofty target for $40 billion in US agricultural purchases this year.
The USDA is scheduled to release its weekly export sales report on Friday, a day later than normal, due to a winter storm in Washington that prompted an early closure of federal agencies on Tuesday.
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