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Soybeans Ease, South American Supply Woes Limit Decline

  • Soybeans tick lower, Brazilian supply concerns limit decline
  • Wheat little changed after Tuesday's deep losses; corn drops

SINGAPORE, Dec 29 (Reuters) - Chicago soybean futures ticked lower on Wednesday but were trading near their highest since late July, supported by worries of adverse weather curbing production in top exporter Brazil.

Wheat was largely unmoved after declining more than 2% in the previous session.

The Chicago Board of Trade (CBOT) most-active soybean contract slid 0.1% to $13.66-3/4 a bushel, as of 0246 GMT.

Wheat was little changed at $7.83-1/4 a bushel and corn lost 0.3% to $6.03-1/4 per bushel.

Soybean and corn crop harvests are expected to be smaller in southern Brazil this season as fields are suffering from dryness, weather forecasters and consultancies said.

However, parts of central and southeastern Brazil may see some "limited relief" from rain later this week, Commodity Weather Group said on Tuesday.

An "active rain pattern" in northern Brazil could help crop growth, but signs of "excess rain" and flooding concerns are emerging in northeastern areas, the company said.

The U.S. soybean crush in November likely totalled 5.753 million short tonnes, or 191.7 million bushels, according to the average forecast of 10 analysts surveyed by Reuters ahead of a monthly U.S. Department of Agriculture (USDA) report.

Crush estimates ranged from 189.9 million bushels to 195.7 million bushels, with a median of 191.5 million bushels.

Egypt's General Authority for Supply Commodities set a tender on Tuesday to buy an unspecified amount of wheat from global suppliers for shipment from Feb. 15 to March 3.

The USDA on Monday said 271,349 tonnes of U.S. wheat was inspected for export last week, which was on the low end of a range of trade estimates.

Commodity funds were net sellers of CBOT corn, soybeans, soyoil and wheat futures contracts on Tuesday, and net buyers of soymeal futures, traders said.

Reporting by Naveen Thukral; Editing by Subhranshu Sahu

Source: Reuters

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