GRAINS-Corn heads for biggest weekly loss since July on abundant supply

CANBERRA, Jan 16 (Reuters) - Chicago corn futures edged higher on Friday but were still set for a weekly loss of more than 5%, their steepest drop since July, after upward revisions to production estimates underscored abundant global supply.

Wheat and soybean futures also nudged higher, though ample supply capped gains, leaving both contracts on track for modest weekly losses.

FUNDAMENTALS

The most-active corn contract on the Chicago Board of Trade (CBOT) Cv1 was up 0.2% at $4.21 a bushel, as of 0133 GMT, but down 5.6% from last Friday's close.

CBOT soybeans Sv1 climbed 0.3% to $10.55-3/4 a bushel but were down 0.6% over the week, while wheat Wv1 gained 0.2% to $5.11-3/4 a bushel and was headed for a 1.1% weekly fall.

Corn prices tumbled 5.4% on Monday after the U.S. Department of Agriculture (USDA) lifted its estimates for U.S. production and inventories more than analysts had expected.

The International Grains Council highlighted expectations of plentiful supply on Thursday, raising its 2025/26 global corn production estimate by 15 million metric tons to 1.313 billion tons while also increasing its assessment of worldwide wheat output.

A meteorologist said on Thursday that limited rainfall in Argentina, the third-biggest corn exporter, could damage its crop, but the country is still forecast to break production records.

In soybeans, prices have been supported by strong U.S. domestic demand and a jump in CBOT soyoil prices, which rose 4.4% on Thursday and were up another 0.5% on Friday after Reuters reported that the U.S. government plans to finalise 2026 biofuel blending quotas by early March. BOc1

The U.S. National Oilseed Processors Association said its members crushed the second-largest monthly amount of soybeans on record in December, beating analyst expectations.

However, plentiful supply still weighs on prices. Crop agency Conab on Thursday projected record Brazilian soybean output of 176.12 million tons in the 2025/26 marketing year, and consultants Agroconsult said the crop would be an even bigger 182.2 million tons.

MARKETS NEWS

Winning results from chipmaker TSMC 2330.TW and major banks bounced Wall Street higher after two days of losses on Tuesday, while gold fell from recent highs as U.S. jobless data boosted the dollar and President Donald Trump moderated his message about a deadly crackdown on protests in Iran. MKTS/GLOB