Chicago wheat futures drop nearly 3 pct on government crop report

CHICAGO, Jan. 12 (Xinhua) -- Chicago Board of Trade (CBOT) grains closed mixed on Friday, with wheat futures dropping nearly 3 percent, after the U.S. Department of Agriculture (USDA) crop report showed larger-than-expected U.S. winter wheat plantings.

Corn futures fell to life-of-contract lows, while soybeans turned higher in a recovery from four-month lows in the wake of the midday USDA supply and demand data.

The most active corn contract for March delivery fell 2.5 cents, or 0.72 percent to close at 3.4625 dollars per bushel. March wheat delivery dropped 12.75 cents, or 2.94 percent to close at 4.205 dollars per bushel. March soybeans added 10.5 cents, or 1.11 percent to settle at 9.605 dollars per bushel.

The USDA estimated 2018 winter wheat plantings at 32.608 million acres, the smallest since 1909 but above analysts' expectations for 30.1 to 32 million.

The government raised its estimate for U.S. corn production due to record-large yields and trimmed its estimate for the U.S. soybean harvest, even as that crop remained the biggest ever.

In its report, the USDA pegged the U.S. 2017 corn crop's average yield at 176.6 bushels per acre, compared with the average trade estimate of 175.4 bushels per acre and its estimate of 175.4 last month.

For soybeans, the final U.S. average yield is estimated at 49.1 bushels per acre versus the average trade estimate of 49.5 bushels an acre and the USDA's estimate of 49.5 last month. Enditem