SINGAPORE: Chicago soy fell half a percent on Friday, as the market took a breather following a four-day rally, but stayed on track for its biggest weekly gain in almost two years on dwindling stockpiles and firm cash prices.
Wheat rose 0.3 percent after sliding more than 6 percent in the last two sessions as the market was weighed down by a US government forecast of higher global and US grain supplies, while corn was unchanged.
"We are still bearish on wheat as there is a lot of competition in the market and I don't see any fresh news which can trigger a surge in prices," said Lynette Tan, a grains analyst at Phillip Futures in Singapore.
"Corn is likely to come under pressure as the market has digested news of China's purchases."
Chicago Board of Trade November soybeans fell 0.4 percent to $12.51-3/4 a bushel by 0230 GMT, while December wheat gained 0.3 percent to $6.20 a bushel. December corn was flat at $6.38-1/4 a bushel.
Soy has jumped around 8 percent so far this week, its biggest weekly gain since November 2009, which is coming after five weeks of losses. Wheat is up 2.5 percent, snapping six consecutive weeks of decline, while corn has added 6.3 percent in its second week of gains.
Soybeans have rallied on support from firm cash markets as well as some end user buying amid trade expectations of a rebound in Chinese imports on positive crush margins.
On Wednesday, the US agriculture department forecast the US soybean stockpile at 160 million bushels at the end of 2011/12, 12 percent below what traders expected. It said the stockpile at the start of the year was less than expected and the crop would be slightly smaller.
The National Oilseed Processors Association's monthly crush data due for release on Friday should show the US crush for September at 118.05 million bushels, analysts projected on Thursday.
The wheat market has been under pressure since Wednesday, when the USDA boosted its domestic wheat stocks outlook by 10 percent and raised its world supply view by 4 percent in its monthly crop report.
Argentina's 2011/12 wheat harvest is expected to total at least 12.6 million tonnes, down from 15.8 million tonnes last season, the Buenos Aires Grains Exchange said in its first estimate of the crop.
The US government confirmed the sale of 900,000 tonnes of US corn to China, signaling the country's emergence as a major importer that could prove to be explosive for grains markets.
It was the second largest sale of US corn in a single day to China, coming a day after China said it was buying 1.5 million tonnes of the grain. An additional 292,110 tonnes of U.S corn was sold to unknown destinations, USDA said.
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