Chicago Board of Trade corn futures declined on Friday, with the benchmark December contract posting a three-month low on worries about an escalation in the US trade war with China, traders said. China said it will impose an extra 5% tariff on US soybeans from September 1 and additional 10% duties on US wheat, corn and sorghum from December 15. As China's government had already banned companies from buying US farm goods, the tariffs were seen as mostly symbolic. Still, escalating tensions worried traders.

CBOT December corn settled down 3-1/4 cents at $3.67-3/4 per bushel. For the week, the contract fell 13 cents a bushel or 3.4%. The four-day Pro Farmer Midwest Crop tour wrapped up late Thursday, with scouts projecting below-average crop potential in Iowa, the top US corn state, and Minnesota, the No. 4 corn producer.

Copyright Reuters, 2019