The slight fall followed strong gains on Thursday that were fuelled by a weaker dollar and rising oil prices as better-than-expected third quarter economic growth in the United States eased concerns about the pace of economic recovery.

The dollar steadied on Friday as investors paused after a broad rally on equities and commodities a day earlier sparked by news the U.S. economy grew by 3.5 percent in the prior quarter.

“It is still a weather market for row crops. There is still heavy rain through to Saturday, but Sunday through to Wednesday looks reasonably clear, so fingers crossed that farmers can get into the field,” said Tim Glass, global head of commodities at National Australia Bank.

“If this weather can clear up early Saturday night and there’s a good break for harvesting row crops right through next week then a bit of selling pressure might come back into the market.”

Wet, cold weather has contributed to the slowest start to U.S. corn and soybean harvesting since official data began in 1985, and has also hampered sowing of winter wheat.

Wheat exports

Corn for December delivery on the Chicago Board of Trade fell 0.99 percent to $3.75-3/4 per bushel by 1202 GMT after jumping 2.8 percent on Thursday as outside markets turned friendly and flooding in the Mississippi Delta threatened crops remaining to be harvested.

The December contract is on course for a near 5 percent weekly loss as traders look to a pick up in the harvesting pace in the Midwest where a near record crop is still expected.

November soybeans shed 0.86 percent to $9.72-1/4. Soybeans also eased over the week as worries about tight supplies receded, with the focus returning to an expected record U.S. crop which, together with improved South American output, promises to reduce a supply squeeze this year.

On wheat markets, CBOT December delivery eased 0.74 percent to $5.00 per bushel. The front-month contract bounced 1.8 percent on Thursday to break a four-day losing streak but is still heading for a 7 percent loss for the week.

“Wheat has been sold off quite aggressively but there tends to be end of the month buying so that’s one to watch for,” said Glass.

Wheat had surged to a four-month peak last week on the back of weather concerns and fund buying before a sharp pullback.

Sluggish export demand for U.S. wheat has kept prices under pressure as the market continues to digest high stocks after big crops in the northern hemisphere for the second straight year.

“If economic news calls for the market to rebound, (wheat) fundamentals remain heavy as underlined by the new IGC report,” French consultancy Agritel said in a note.

The International Grains Council raised on Thursday its forecast for global wheat production in 2009/10 to 667 million tonnes, the second-largest crop on record.

In export news, U.S. wheat export sales in the week ending Oct.22 were less than expected at 347,7000 tonnes but news that Iraq bought 100,000 tonnes of U.S. wheat provided some support.

European weekly data confirmed a slowdown in wheat export licences since September, with 229,000 tonnes awarded in the past week.

Milling wheat futures on Euronext were flat, with the benchmark January contract unchanged at 131.75 euros a tonne, as operators digested the modest export figures and tracked the subdued trend on CBOT.