Chicago soybean futures recovered a little ground on Friday but remained set for their biggest weekly decline in two years as crop-friendly weather boosted the chances of a bumper U.S. harvest.
Corn rose as it drew support from a sharp cut to Brazil's official forecast for its main corn crop, but was poised for a third weekly loss as corn was also expected to benefit from improving weather conditions in the U.S. Midwest.
The most active soybean futures on the Chicago Board of Trade was up 1.2 percent at $10.37-1/2 a bushel by 1148 GMT, while corn was 1.7 percent higher at $3.54-1/4.
Over the week, soybeans have lost nearly 9 percent, their biggest weekly fall since June 2014, while corn has lost 3.5 percent this week, in what would be a third consecutive weekly fall.
Rains are helping U.S. corn and soybean crops while fears of a dry La Nina weather pattern in the Midwest this summer have subsided.
The improving weather outlook has pressured prices after a strong rally in the second quarter fueled by concerns about dryness in the United States and harvest losses in Argentina.
"There is long liquidation in soybeans," said Kaname Gokon at brokerage Okato Shoji in Tokyo. "There have been heavy rains in the U.S. Midwest which are good for the crop."
Expectations by weather forecasters that the onset of a La Nina, which could trigger a dry summer in the U.S. Midwest, had been pushed back to September suggest soybeans will not get hit during their key development stage in August, CBA analysts said.
Corn was drawing some support from Thursday's downgrade to Brazil's corn crop by farm ministry agency Conab, which could allow U.S. exporters to pick up extra demand.
Grain markets will get a fresh indication of export demand in weekly U.S. sales figures at 1230 GMT.
CBOT wheat was up 0.8 percent at $4.28-3/4 a bushel, but was on course for a fifth straight weekly decline.
U.S. wheat, which touched 10-year lows this week, has been sapped by strong yields in the advancing U.S. harvest that will add to ample U.S. and global inventories.
The most active wheat futures on Euronext, however, was set for a weekly rise amid concerns that the French harvest getting under way will show serious damage from torrential spring rain.
Farm office FranceAgriMer said the amount of soft wheat rated good/excellent fell to 59 percent by July 4 from 65 percent a week earlier, the lowest rating for the period in the last five years.