Chicago agricultural commodities settle higher

Chicago Board of Trade (CBOT) grains futures close higher Friday on follow-through buying after the U.S. Department of Agriculture slashed domestic stockpile estimates in a monthly report.

The most active corn contract for March delivery rise 5 cents, or 1.35 percent, to 3.745 dollars per bushel. March wheat delivery rose 5.5 cents, or 1.24 percent, to 4.49 dollars per bushel. March soybeans added 8.5 cents, or 0.81 percent, to 10.59 dollars per bushel.

In the outside markets, the Brent crude oil market is 0.90 dollar per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 107 points higher.

On Friday, heavy rains in Brazil have halted the harvest of soybeans and the planting of that country' s second corn crop, known as safrihna. The seven-day weather forecast calls for the rains to continue across northern Argentina and parts of Brazil, according to National Oceanic and Atmospheric Association.

Also, private exporters reported to the U.S. Department of Agriculture export sales of 140,000 tonnes of soybeans for delivery to unknown destinations during the 2016/2017 marketing year.

The USDA also cited increased wheat export shipments to support its estimate of smaller stocks.

The government cut its corn supply outlook due to increased use in ethanol production and held its U.S. soybean forecast steady.

The USDA cut its estimate of world wheat ending stocks for 2016-17, largely due to reduced harvest estimates for India and Kazakhstan, although global inventories would still be at a record. "Lower inventories are obviously a plus for prices," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. "Yet we are somewhat skeptical that the news is worth an extra two-and-a-half to 3 percent on wheat prices." Endit