Soybean retreats as South American crop crunch eases

SYDNEY/PARIS: US soybean futures edged lower on Thursday, retreating for the first time in five sessions as concerns about lower yields of South American crops eased on a positive rain forecast.

Corn fell, while wheat slid nearly 1 percent to extend losses into a second consecutive session.

The most active soybean futures on the Chicago Board of Trade were down 0.2 percent at $9.20-1/4 a bushel by 1155 GMT, having firmed 0.2 percent on Wednesday.

Market participants were awaiting a long list of US Department of Agriculture (USDA) crop forecasts and estimates due on Friday after key reports were delayed due to the 35-day partial government shutdown.

"Some South American soybean regions remain on the dry side. Weather forecasters are expecting enough rain to fall in those regions to forestall greater worries about a decline in yields," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.

The harvest in Brazil's second-largest producing state of Parana is well ahead of last season, with limited damage to the fields from drought, state agricultural research body Deral said on Tuesday.

However, losses were checked as traders drew comfort from confirmation of more export sales to China, following a vow by Beijing last week to purchase 5 million tonnes, stoking hopes for a trade deal between Washington and Beijing.

The most active corn futures were down 0.1 percent at $3.79-1/2 a bushel, having gained 0.4 percent in the previous session.

Wheat were down 0.9 percent at $5.21-1/2 a bushel, after closing down 0.2 percent on Wednesday, despite US export prospects rising.

"The wheat price on the CBOT climbed briefly yesterday after Russia raised the prospect of lower grain exports in the short term due to the rise in local prices. These gains have been shed again in the meantime, however, no doubt partly as a result of the firmer US dollar," Commerzbank said in a note.