Investing.com - U.S. corn futures rallied more than 2% on Friday, as forecasts showing adverse weather conditions across the U.S. grain belt prompted investors to return to the market and cover short positions.
On the Chicago Mercantile Exchange, U.S. corn for December delivery surged 2.74%, or 9.4 cents, to settle at $3.5600 by close of trade on Friday.
Updated weather forecasting models raised the prospects of freezing weather that could damage crops in northern areas of the Midwest next week, leading to a round of bargain-buying and short-covering.
A day earlier, corn futures hit $3.4360 a bushel, a level not seen since June 2010.
Despite Friday's sharp gains, the December corn contract lost 2.69%, or 9.87 cents, on the week.
Corn prices have been under heavy selling pressure in recent months as expectations of record yields across much of the U.S. grain belt drove prices lower.
According to the U.S. Department of Agriculture, the corn harvest will total 14.03 billion bushels, which would break last year's record of 13.93 billion.
Meanwhile, U.S. soybeans for November delivery jumped 1.82%, or 18.2 cents, on Friday to settle the week at $10.2140 a bushel by close of trade.
Prices of the oilseed slumped to $10.0120 a bushel on Thursday, the lowest level since September 2010.
On the week, the November soybean contract declined 1.07%, or 11.1 cents amid ongoing indications this year's crop would be by far the largest in history.
According to the USDA, this fall's U.S. harvest will reach an all-time high of 3.82 billion bushels.
Elsewhere on the Chicago Board of Trade, U.S. wheat for September delivery rose 0.94%, or 5.0 cents, on Friday to end the week at $5.3520 a bushel.
A day earlier, wheat prices fell to $5.2740 a bushel, the weakest since August 13.
On the week, the September wheat contract dropped 5%, or 28.17 cents, as continued strength in the U.S. dollar and receding concerns over a disruption to supplies from the Black Sea-region weighed.
A stronger dollar makes domestic wheat less competitive on the world market.
Ukraine signed a ceasefire deal with pro-Russia rebels on Friday, marking the first step toward ending the five-month old conflict in eastern Ukraine.
Ukraine and Russia are key producers and exporters of wheat and other grains.
In the week ahead, market players will focus on the release of key USDA data, including crop progress and weekly export sales figures.
Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.