U.S. corn, soy fall on dollar, await USDA report

By David Brough and Tamora Vidaillet

LONDON/PARIS (Reuters) - U.S. corn and soybean futures fell on Friday, pressured by strength in the dollar, falling oil prices and anticipation of next week's crop report by the U.S. Department of Agriculture.

"The market is uncertain ahead of next week's USDA report, and that is reflected in the prices," said Sudakshina Unnikrishnan, an analyst with Barclays Capital in London.

European grain traders said the dollar rally and fall in oil prices were adding to downside momentum.

U.S. corn and soybean futures had reversed earlier gains after strong weekly exports data and a technical rebound lifted the markets from their lowest level in several months.

But analysts in Asia said next week's crop report by the U.S. Department of Agriculture could weigh on the prices as it is widely expected to forecast a bumper grain output.

"People are waiting for the next USDA forecast," said Tetsu Emori, a fund manager at Astmax Co in Tokyo. "The market expectation is that yields will be good because of the weather, so prices may come under pressure."

Chicago Board of Trade September delivery corn was down 2 percent to $5.11-3/4 per bushel, while the benchmark November soy fell 2 percent to 12.13-3/4 a bushel by 6:32 a.m. EDT.

The markets found fundamental support as the Department of Agriculture on Thursday reported sales figures for U.S. wheat, corn and soybeans that exceeded trade estimates.