Wheat futures also eased after weekly USA wheat export sales came in below analyst expectations, while corn futures were almost unchanged.
US soybean futures dropped to four-month lows on Friday, on pace for the fourth consecutive session of declines ahead of USA government crop data due at midday that was expected to show bigger global soy supplies.
Chicago soybean futures were little changed on Friday with the market set for its biggest weekly decline since mid-December on pressure from large US supplies and forecasts of a near-record Brazilian crop.
The USDA has released its World Agricultural Supply and Demand Estimates report for January, reporting larger corn production, increased food, seed and industrial use, lower estimates for feed and residual use, and reporting greater stocks. Soybean ending stocks were raised too, largely due to a cut in the export forecast for the oilseed. The increase is attributed to an increase in yield, which reached a record 176.6 bushels per acre.
Soybean production was pegged at 4.392 billion bushels, down from the USDA's last estimate of 4.425 billion bushels. USA soybean production is forecast at 4.39 billion bushels, down one percent from the November forecast and up two percent from a year ago. Acreage for harvest as beans was estimated at 1.94 million acres, up 160,000 acres from the previous year. The average yield per acre is estimated at 49.1 bushels, down 0.4 bushels from last month and down 2.9 bushels from previous year. Brazil's 2016-'17 corn exports are reduced based on observed shipments to date for the local marketing year, which started in March.
Wheat is up about half a percent this week, having risen 3.6 percent in four weeks of positive moves and corn is down 0.7 percent, the biggest weekly fall in a month.
Corn stocks are up 40 million bushels when compared to December. USDA boosted the domestic soybean ending stocks forecast to 470 million. It raised its estimate of the Brazil crop to 110 million tonnes and the export outlook to 67 million tonnes.
Feed and residual use is down 25 million bushels, falling to 5.55 billion based on indicated disappearance during September-November as reflected by the December 1 stocks.