CHICAGO: Soybean futures on the Chicago Board of Trade showed modest losses by the closing bell on Wednesday, pressured by wetter forecasts for Argentina, but the market pared early declines and traded higher at times on talk of Chinese demand, traders said.
* Soy crushing margins in China have turned positive, analysts said, a factor that could stimulate export interest for US soybeans -- at a time when wet weather in parts of central Brazil threatens to slow that country's early soy harvest.
* Soy market also underpinned by weaker US dollar, which tends to support dollar-backed grains and oilseeds.
* Additional support from uncertainty over soy production prospects in Argentina, and firming cash soy markets in the interior US Midwest.
* March soybeans found chart support near the 50-day moving average of $11.72-3/4, with the contract rallying after falling to a session low of $11.72-1/4. Some analysts viewed the next support level at $11.57-1/2, which was Friday's low.
* Updated midday weather forecasts looked wetter this weekend for Argentina, a factor that pressured CBOT soybeans and corn. Andy Karst, meteorologist for World Weather Inc, said the midday pure model data indicated 0.75 to 1.5 inches of weekend rain, with locally heavier amounts.
* La Nina weather phenomenon, which has been linked to the recent hot and dry weather in Argentina, has displayed signs of weakening over the past two weeks, Australia's weather bureau said.
* Private analyst Michael Cordonnier lowered his forecast of Brazil's 2011/12 soybean production to 71 million tonnes, down 1 million from his previous figure. He lowered his Argentine soy crop forecast to 50 million tonnes, down 1 million.
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