US corn futures stopped for a breather on Friday following their strongest one-day rally in six months on talk that the US government may cut its acreage estimate. New-crop soybeans lost ground on prospects that farmers had planted more beans instead of corn, while old-crop soy gained on concerns over tight supplies.
The US Department of Agriculture on Wednesday said it would collect updated data on corn and sorghum to reflect "variable weather conditions in key crop-growing regions" for its August 12 crop production report. The USDA surprised the market with a planting report in late June that said farmers had sown the second-largest corn acreage since 1946, even though rainy conditions delayed planting in many areas of the eastern Corn Belt.
The plantings report, coupled with near-perfect growing conditions during July, bolstered expectations for a bumper crop this autumn and pressured corn prices for the past few weeks. On Friday, Chicago Board of Trade September corn rose 1/4 cent to $3.27 per bushel by 0324 GMT, after settling up 19 cents on the USDA's plan to collect new data.
The front-month August soybeans rose 2 cents to $10.26 per bushel, while new-crop November soybeans fell 3 cents to $9.29 per bushel. Wheat futures ticked higher, with September wheat up 3/4 cent to $5.32 per bushel. Wheat crops in eastern Australia face the prospect of drier-than-normal weather over the next three months, a critical growing period ahead of harvesting that starts in November. USDA export data on Thursday showed higher-than-expected demand for corn and soybeans.
The USDA said export sales of soybeans were 701,900 tonnes (319,900 old crop), above estimates for 450,000 to 650,000 tonnes. Corn export sales also topped expectations, coming in at 1.33 million tonnes (757,700 old crop), above estimates for 800,000 to 1.2 million tonnes.
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