CHICAGO (Dow Jones)--Chicago Board of Trade corn futures are expected to open weaker Friday on the latest government supply and demand estimates and a stronger dollar, traders said.

Corn is called 5 to 10 cents lower, following the crop production and supply and demand reports from the U.S. Department of Agriculture. The report upped the size of the crop and the ending stocks.

The USDA pegged the corn crop at 13.018 billion bushels, up from a September estimate of 12.955 billion and above the average analyst estimate of 12.993 billion bushels.

The production estimate includes a yield of 164.2 bushels per acre, up from analyst expectations of 162.7 bushels. Last month the USDA projected the yield at 161.9 bushels per acre.

The yield increase caught some traders a little off guard, but a cut in harvested acreage from 79.3 million acres, from 80 million, kept the overall production from climbing much higher.

Calls are lower based on the report and the recent rally in the market, which could lead to a correction Friday, traders said. A stronger dollar could also weigh.

But traders say that the market still has underlying support as the weather remains supportive.

"If corn drops 10 cents, I think it will be bought," the trader said.

Traders and analysts have said leading into the report that the USDA's estimates might not be very reliable because of all the current uncertainty regarding the weather and the size of the crop.

"Yield was up, but this is hard to justify given the minimal amount of harvest that has been done," said Karl Setzer of MaxYield Cooperative in West Bend, Iowa.

DTN Meteorlogix said in a forecast that heavy rains and flooding throughout the southeast corn belt "will mean significant delays to field work," adding that a hard freeze appears likely for most fields west of the Mississippi River, with a freeze also possible in parts of Illinois, Wisconsin and Michigan.

In overnight trade, December corn was up 1 cent to $3.65 per bushel and March corn was up 1 cent to $3.77 1/4.

The next upside price objective is to push prices above solid technical resistance at the August high of $3.76 a bushel, a technical analyst said. The next downside price objective for the bears is to push and close prices below solid technical support at this week's low of $3.27 1/2 a bushel.

First resistance for December corn is seen at Thursday's high of $3.70 and then at $3.76, the technical analyst said. First support is seen at Thursday's low of $3.58 3/4 and then at $3.54.


-By Ian Berry, Dow Jones Newswires; 312-341-5778; ian.berry@dowjones.com