Soybeans Poised for Rally

Grain and soybean futures prices were mostly higher in light trading Friday on the Chicago Board of Trade, but soybeans are likely to rally Monday in response to a government production report.

The report was released by the Agriculture Department after the close of trading and disclosed a reduction in the agency’s estimate of the 1984 soybean crop, which was lowered to 1.86 billion bushels from 1.9 billion bushels.

Analysts said soybeans could jump 2 cents to 5 cents a bushel, and cash merchandisers raised their bids to farmers shortly after the report was released.

However, Jerry Gidel, a grain analyst in Chicago with Paine Webber Group Inc., said Brazil could make up the slack in soybean production as recent rainfall has relieved dry conditions there.

The USDA raised its estimate for the 1984 corn crop to 7.64 billion bushels from 7.52 billion bushels, and analysts said the increase could cause a slight decline in corn prices.

The session Friday was dull and prices showed only slight changes, as few traders wanted to be holding positions when the report was released.