PARIS: Chicago corn futures edged higher on Friday after a sharp drop this week as investors weighed improved growing conditions against uncertainty over acreage levels following a rain-soaked spring.
Wheat also ticked up on bargain-buying after also falling steeply this week due to the weakness in corn and supply pressure from US and European wheat harvests.
Soybeans similarly regained ground as traders also pondered whether a call on Thursday between senior US and Chinese officials may herald progress in a trade dispute that has stalled US soybean exports.
Investor sentiment was buoyed too by growing expectations that the US central bank will cut interest rates later this month.
The most-active corn contract on the Chicago Board Of Trade was up 0.4pc at $4.31-1/2 a bushel by 1252 GMT, after holding above Thursday's two-week low of $4.28.
"The corn story is far from over," said Ole Houe, director of advisory services at brokerage IKON Commodities. "The market still needs to reach a consensus as to how many acres were lost due to rains and flooding."
Last week, grain markets were underpinned by fears that US corn and soybeans, already weakened by soggy planting conditions, could suffer from prolonged hot and dry weather.
But rain this week in the Midwest and forecasts for heat to ease next week created selling pressure this week.
Investors are already looking ahead to a US Department of Agriculture (USDA) crop report on Aug. 12, which is expected to include updated planting estimates, for a clearer indication of harvest prospects.
CBOT soybeans were up 1.1pc at $9.08-3/4 a bushel, while wheat added 0.5pc to $4.95-3/4.
USDA export data on Thursday showing China had cancelled a US soybean cargo last week had dampened sentiment in the soybean market, although news of Thursday's call between US and Chinese officials maintained some hope for progress.
Commodity funds were net sellers of Chicago Board of Trade wheat, corn, soybean, soymeal and soyoil contracts on Thursday, traders said.
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