Soybeans up for third session on Argentina dryness; wheat eases

SINGAPORE: Chicago soybean futures rose for a third straight session on Tuesday with the market trading near its highest in more than four months, buoyed by dry weather in Argentina and strong US demand.

Wheat slid for a second day as US exporters face stiff competition in an amply supplied global market.

The Chicago Board of Trade most-active soybean contract gained 0.2 percent to $10.00-1/2 a bushel by 0258 GMT, not far from Monday's peak of $10.08-1/2, the highest since July 31.

Wheat lost 0.1 percent to $4.35 a bushel and corn was down 0.1 percent to $3.53-1/4 a bushel.

Hot and dry weather in parts of Argentina's oilseed-producing areas is expected to reduce yields.

Rainfall over the weekend was limited in Argentina, the top global soymeal and soyoil exporter, and showers were expected to be limited this week, MDA Weather Services said in a note to clients.

A report from the US Department of Agriculture (USDA) showed the US soybean crush in October at about 176 million bushels was above analysts' estimates, reflecting strong domestic demand.

"Looks like Argentina's soybean plantings are getting delayed because of dry weather, there could be some impact on yields although Brazil's crop seems to be doing fine," said Phin Ziebell, an agribusiness economist at National Australia Bank.

Brazil's 2017/18 soybean crop could reach 107.6 million tonnes, broker and analyst INTL FCStone said on Monday, raising its forecast from 106.1 million tonnes previously as favourable weather is seen boosting agricultural yields.

The wheat market is being weighed down by record global supplies.

Russian wheat export prices were broadly stable last week amid high grain stocks despite strong export demand, analysts said on Monday.

A decline in Australia's wheat production could still support prices.

Australia's 2017/18 wheat production is expected to decline further, the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) said on Tuesday, after recent storms damaged the crop, and following a severe drought earlier in the season that reduced yields.

The world's fourth-largest wheat exporter is forecast to produce 20.3 million tonnes of wheat this year, the agency said, down more than 6 percent from its September forecast of 21.64 million tonnes and 42 percent below last year's record crop of more than 35 million tonnes.

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