By Francesca Fontana

Grain futures closed mixed after Thursday's rally as analysts and traders watch for signs that the trade skirmish between the U.S. and China is causing world demand to be diverted rather than erased.

Corn prices for December contracts rose 1.4% to $3.57 1/4 a bushel at the Chicago Board of Trade. November soybean contracts fell 0.4%, and December wheat contracts fell 0.4%.

Analysts say that traders will be watching for developments on trade relations between the U.S. and countries such as China and Canada, as well as reports that Argentina may raise export taxes. They are also keeping an eye on reports that Argentina bought U.S. soybeans, which could potentially be sold to China as soymeal or beans, after the country suffered drought conditions earlier this year, analysts said.

"With all these tariffs the question is, did the world trade on soybeans shrink, or did it just get displaced," said Don Roose, president of brokerage U.S. Commodities.

This week's corn export data contributed to a rally in corn prices that continued Friday. The U.S. Department of Agriculture reported corn export sales of 1.38 million tons Thursday, exceeding trade expectations.

Write to Francesca Fontana at francesca.fontana@wsj.com

(END) Dow Jones Newswires

September 21, 2018 15:45 ET (19:45 GMT)

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