CHICAGO, May 9 -- U.S. corn and wheat futures dropped on Friday, while soybeans advanced on strong China's import demand.
The most active corn contract for July delivery fell 9 cents, or 1.74 percent, to 5.075 dollars per bushel. July wheat lost 12. 75 cents, or 1.73 percent, to close at 7.225 dollars per bushel. July soybeans rose 17.5 cents, or 1.19 percent, to close at 14.87 dollars per bushel.
Corn futures on Friday posted the biggest decline in the week after the release of U.S. Department of Agriculture's (USDA) world agricultural report for May, which pegged 2014-2015 U.S. corn production at 13,935 million bushels, up 10 million bushels from the previous year.
Soybean futures advanced on strong Chinese imports which are set to grow 3 million tonnes to 72 million tonnes in 2014-2015, up from 69 million tonnes in 2013-2014.
Meanwhile, global reserves of corn will increase 14 million tonnes to a record 182 million tonnes, world wheat stocks will rise 1 million tonnes to 187.4 million tonnes, and world soybean inventories will also reach record 82 million tonnes, up 25 percent year on year, USDA said.
The report registered combined world corn, wheat and soybean demand growth at 1.6 percent in 2014, down from 5.1 percent growth in 2013.
Market analysts believed that adverse weather conditions are needed for any further rally on the grains market in the short term.