Chicago agricultural commodities settle higher on fund buying

Chicago Board of Trade (CBOT) grains futures close higher Friday, boosted by light investment fund buying ahead of next week's presidential election and U.S. Department of Agriculture monthly supply and demand data.

The most active corn contract for December delivery rose 0.75 cents, or 0.22 percent, to 3.4875 dollars per bushel. December wheat delivery added 2.25 cents, or 0.55 percent, to 4.1425 dollars per bushel. January soybeans rose 1.25 cents, or 0.13 percent, to 9.9075 dollars per bushel.

Corn and soybean futures fell sharply for the week, despite Friday's modest gains, while wheat futures rose for the first time in three weeks. Traders were largely squaring their positions ahead of the U.S. election on Tuesday and USDA report due on Wednesday.

Analysts expected the USDA to raise its forecast for U.S. soybean production to a new record high and slightly reduce its outlook for U.S. corn output. Analysts also predicted the USDA would narrowly increase U.S. wheat ending stocks.

Soybean prices extended gains for a second straight session after stumbling lower earlier in the week as speculative investors like hedge funds and others abandoned bets that prices would fall in the near term.

The moves came ahead of a government report due out from the U.S. Department of Agriculture next week that is widely expected to boost forecasts for U.S. supplies of the oilseeds thanks to strong yields revealed during the fall harvest.

Corn prices eked out slight gains as traders squared positions ahead of the crop report. Wheat prices improved, buoyed partly by concerns over dry conditions in regions of the U.S. Midwest where winter varietals of the grain are grown. Endit