Chicago agricultural commodities closed mixed

Chicago Board of Trade (CBOT) grains futures closed mixed Friday, with soybean futures modestly lower and corn prices up, after the U.S. Department of Agriculture raised its production estimates in a monthly report.

The most active corn contract for December delivery was up 1.25 cents, or 0.38 percent, to 3.33 dollars per bushel. September wheat delivery rose 6.25 cents, or 1.5 percent, to 4.225 dollars per bushel. November soybeans fell 2.25 cents, or 0.23 percent, to 9.8175 dollars per bushel.

Soybean production in the 2016-2017 marketing year that starts on Sept. 1 is forecast at 4.06 billion bushels, well above last month's outlook for 3.88 billion, the USDA said in its monthly World Agricultural Supply and Demand Estimates report. Yield is pegged at 48.9 bushels an acre, above July's projection of 46.7 bushels and estimates for 47.6 bushels.

Corn output is forecast by the government at 15.2 billion bushels, up from 14.5 billion projected last month and analyst expectations of 14.8 billion, the USDA said. Yield is pegged at 175.1 bushels an acre, up from July's projection of 168 bushels and analyst estimates of 170.8 bushels an acre.

The updated figures come as largely favorable weather has graced the farm belt so far during the summer growing season, improving grain yields.

While the numbers were, on the surface, bearish for futures, traders aren't fully convinced that production will rise as much as the USDA expects. Endit