Corn rallies limit-up on USDA end-season stocks surprise

US corn futures surged the daily trading limit on Friday, jumping 5.6 percent after the government shocked the market with a report that end-of-season stocks tumbled 12 percent from a year ago, coming in at less than 1 billion bushels for the first time in eight years.

Wheat futures jumped 5.5 percent, the strongest gain in three months, as the US Department of Agriculture said Sept. 1 stocks of the grain declined year-on-year, counter to trade expectations for an increase.

Soybeans followed corn higher, rising nearly 2 percent despite a smaller-than-expected drop in ending stocks. Technical buying gave prices a boost, as well as expectations for continued solid demand for the oilseed.

Corn pulled grains markets higher after a rough week in which corn and soybean prices sank to three-month lows on pressure from an accelerating Midwest harvest and month-end and end-of-quarter liquidation by funds.

Friday's USDA report was the latest in a string of releases by the agency that have roiled markets over the past three years.