By Benjamin Parkin
Corn and soybean futures rebounded on Friday as traders absorbed a government report projecting larger-than-expected harvests.
Traders were content to consolidate the current prices, analysts said, after futures had fallen sharply in the wake of the U.S. Department of Agriculture's Thursday report. Some analysts said they expected futures to remain tethered to current price levels for the foreseeable future.
Most notably, the USDA put this year's corn production at 14.578 billion bushels with yields at a record 175.4 bushels per acre. That was well above pre-report expectations, which had been tempered by a difficult growing season.
But analysts said that better genetics likely helped the corn crop rebound from early weather trouble to mark another year of records.
"It appears as though the old adage 'Big crops get bigger' is going to hold true for the corn complex this year," said Karl Setzer of MaxYield Cooperative in a note to clients.
December corn futures rose 0.6% to $3.43 1/2 a bushel at the Chicago Board of Trade while January soybean contracts gained 0.2% to $9.87 a bushel.
Wheat futures led gains for much of Friday's session after the USDA cut domestic and global supply forecasts.
The world is nevertheless still well supplied with wheat. The agency's revised global stock forecasts for 2017-18 of 267.53 million metric tons were a record.
CBOT December wheat futures rose 0.6% to $4.31 1/2 a bushel.
Write to Benjamin Parkin at [email protected]