PARIS/SYDNEY: Chicago soybean futures inched down on Monday, staying near a two-month low, as rising forecasts for South American harvests continued to weigh on prices of the oilseed.
Corn eased for a sixth straight session to touch its lowest in more than a month, as it also remained under pressure from large expected crops in Brazil and Argentina that will bolster global inventories and compete with US exports.
Chicago wheat slipped to a near three-week low, with frost risks for crops in some US growing areas this week failing to counter bearish sentiment.
Grain prices had steadied earlier on Monday, in keeping with consolidation
across financial markets ahead of an expected US interest rate rise later this week, before turning lower again.
The most active Chicago Board of Trade soybean contract was down 0.1 percent at $10.05-3/4 a bushel by 1235 GMT, as it hovered close to Friday's two-month low of $10.03.
The US Department of Agriculture (USDA) last Thursday became the latest forecaster to raise its outlook for Brazil's 2016/17 soybean crop, prompting it to cut its target for US exports and increased projected US carryover stocks.
Swelling South American supply comes as grain markets anticipate a sharp rise in soybean area in the United States.
"The prospect of season 2016 (soy) inventories rising when record acreage is on the cards for season 2017 is not a price friendly combo," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.
The most active CBOT corn futures were down 0.6 percent at $3.62-1/4 a bushel, its lowest since Feb. 1.
The most active wheat futures were down 0.8 percent at $4.37 a bushel, after earlier hitting their weakest since Fe. 21 at $4.36-1/4.
Wheat, like corn and soybeans, extended losses from last week when the USDA forecasts underlined ample inventories, echoing supply pressure in other commodity markets like oil.
"The USDA report amplified the downturn, market opinion is still bearish in the absence of significant (weather) incidents," consultancy Agritel said in a note.
Wheat traders were nonetheless monitoring freezing temperatures expected this week that could threaten soft red winter wheat in about 10 percent of the US Midwest crop belt.
In export news, Saudi Arabia's main state wheat buying agency said on Monday it has purchased 735,000 tonnes of hard wheat in a tender, and traders said US wheat was among origins that may be chosen to fill the order.
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