At 18:49 Beijing time, the most active corn contract on the Chicago Board of Trade (CBOT) rose by 0.3% to $3.98-1/4 per bushel, after having dropped to a nearly four-year low of $3.95 last week. Meanwhile, wheat prices increased by 1.8% to $5.47-1/4 per bushel due to worsening crop conditions in France and anticipation of Egypt's forthcoming record wheat tender; soybean prices rose by 0.6% to $10.14 per bushel.
Traders indicated that the market's next moves might be influenced by the upcoming USDA supply and demand report, which is expected to be released at 24:00 Beijing time on Monday. Surveys show that analysts on average predict U.S. corn production to be 15.112 billion bushels, slightly higher than the USDA's July forecast of 15.10 billion bushels, with expected yield increases offsetting the reduced planting area.
JPMorgan remarked in its Friday update: "Due to adverse weather in the northwest Midwest U.S. in June, we expect a reduction in U.S. corn planting and harvesting area," adding that the bank has adjusted its corn production expectations upwards.
Additionally, on Friday, the French Ministry of Agriculture downgraded its 2024 soft wheat production forecast, expecting a 25% decline from last year, labeling it as one of the worst harvests in 40 years for France, the EU's largest grain producer.
However, traders also mentioned that prospects have improved for Russia, the largest wheat exporter. The Russian agricultural consultancy IKAR announced on Friday it has increased its 2024 Russian grain export forecast from 55 million tons to 56.2 million tons, an upward revision of 2.2%.
Meanwhile, the Buenos Aires Grain Exchange (BdeC) stated on Thursday that crops in eastern Argentina's wheat-growing areas have benefited from recent rainfall, but crops in the western regions continue to deteriorate due to ongoing drought and low temperatures.
