Chicago agricultural commodities settle higher from multiyear lows

Chicago Board of Trade (CBOT) grains futures rose for a second straight session on Friday after domestic corn and wheat crops slid to multiyear lows earlier in the week, with analysts expecting a correction to continue as the harvest progresses.

The most active corn contract for December delivery was up 4.75 cents, or 1.47 percent, to 3.285 dollars per bushel. December wheat delivery rose 4.5 cents, or 1.67 percent, to 3.9925 dollars per bushel. November soybeans rose 8.75 cents, or 0.93 percent, to 9.525 dollars per bushel.

Corn futures closed higher for a second session after eight straight declines left them at the lowest level in almost two years, while wheat contracts were trading at levels last seen a decade ago.

A long holiday weekend and a new trading month also helped to stop the bleeding in commodities, though traders said the long-term futures outlook will depend on how the harvest shakes out this year.

Corn's decline in 2014 came aid a record crop that is expected to be surpassed this year. However, grain production this year in South America has been less robust, helping to drive some export demand for U.S. farmers.

Preliminary harvest reports so far this year are also showing corn crops coming in at yields less than the 175 bushels per acre that an influential U.S. Department of Agriculture survey estimated last month. The corn harvest was projected to come in at a record 15.2 billion bushels.

Wheat futures have also fallen to levels where farmers are likely to hold back on putting their crops out to market, as the value of government insurance price guarantees will be higher, traders said. Endit