CHICAGO: US wheat futures fell nearly 2 percent on Friday after top supplier Russia raised its grain export forecast and dampened speculation that tight supplies would prompt curbs on overseas shipments from the world's biggest wheat supplier.
Soybeans dropped to a three-week low as favorable weather boosted crop prospects in South America, overshadowing support from renewed Chinese buying of US supplies.
Corn edged higher after hitting a three-week low in the previous session.
All three markets poised for weekly declines, with wheat and corn set for their steepest weekly losses in more than three months.
Russia's agriculture ministry lifted its forecast for 2018-19 wheat exports by 2 million tonnes to 37 million tonnes, a move interpreted by traders as another sign that the risk of export restrictions is easing.
Chicago Board of Trade (CBOT) March wheat fell 8-1/4 cents to $5.15-1/4 a bushel by 11:17 a.m. CST (1717 GMT), its lowest since Dec. 6. Selling accelerated as the contract breached chart support at its 20- and 50-day moving averages.
Soybean futures sank to the lowest point since before US President Donald Trump and China's Xi Jinping struck a 90-day trade war truce on Dec. 1. The detente sparked China's first purchases of US soybeans in six months.
China is expected to possibly purchase 2 million tonnes more of US soybeans in the coming days after booking more than 3 million tonnes over the past two weeks.
Futures have struggled to extend rallies as the pace of buying was overshadowed by massive supplies and the start of a potentially record-large Brazilian harvest.
"For a short period of time it was bullish. Beans ran up last week and the market couldn't build on it," said Roy Huckabay, analyst with Linn & Associates. "There's been a certain amount of disappointment in the amount of beans that China has bought."
CBOT January soybeans fell 8-1/2 cents to $8.85 a bushel while March futures dropped 8-1/4 cents to $8.98, the contract's first dip below the key $9 level this month.
CBOT March corn rose 3-1/4 cents to $3.78-1/2 a bushel after earlier hitting a three-week low. But the contract struggled to break above chart resistance at its 20-, 50- and 100-day moving averages.
US markets will be open on Monday for an abbreviated trading session and will be closed on Tuesday for the Christmas holiday. ICE Canada canola futures will be closed on Tuesday and Wednesday.
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