U.S. soybeans fell on Friday, poised for its biggest one-month fall in more than two years as fears ease over potential yield losses due to unfavorable weather.
Corn was set for a record a monthly loss of more than 8 percent, while wheat was on its way to finish July down more than 7 percent.
The most active soybean futures on the Chicago Board Of Trade lost 0.7 percent, falling to $9.71 a bushel after rising to $9.84-1/2 in earlier overnight trade. It closed down 0.8 percent on Thursday.
"U.S. traders are taking the view that the crop situation is fine, with corn and soybean plants in good shape," Sebastien Poncelet of consultancy Agritel said.
"But we'll have a better idea a month from now. There is still time for a weather market to return."
Soybeans are down nearly 16 percent for the month, the biggest one-month fall since June 2014. They erased the surge recorded over the two previous months.
Soybeans have come under pressure as updated weather models have reduced concerns about the threat of hot, dry weather during a critical phrase of crop development.
The most active corn futures was down 0.4 percent to $3.37-1/4 a bushel after closing up 1 percent on Thursday. Corn is down 9 percent for the month, the second consecutive monthly slide and still trading near 21-month lows hit earlier this month.
Some within the market expect the USDA will boost corn yield estimates in its monthly supply and demand report due on Aug. 12 due to historically high U.S. crop condition ratings.
The International Grains Council (IGC) on Thursday raised by 13 million tonnes its estimate for the global corn crop in 2016/17 to 1,016.7 million tonnes. Most of the upward revision was related to the United States.
Analysts said corn and soybeans were also under pressure following disappointing USDA exports figures.
U.S. Department of Agriculture weekly U.S. export sales for the current marketing season of a negative 1,400 tonnes of soybeans were below expectations for sales of 250,000 to 450,000 tonnes. Export sales of 438,800 tonnes of corn were within the range of estimates, but close to the bottom end.
The most active wheat futures fell 0.8 percent to $4.07-1/4 a bushel after closing down 1 percent on Thursday. Wheat is down more than 8.5 percent for the month, the third straight month of slide.
IGC raised its estimate for global wheat output in 2016/17 by nearly 7 million to 735.4 million. A smaller crop in the European Union, hit by adverse spring weather, was more than offset by larger harvests in the United States, Russia and the Ukraine.
(Additional reporting by Gus Trompiz; Editing by Richard Pullin)