SINGAPORE: Chicago wheat fell on Tuesday, with plentiful world supplies capping gains after the market climbed to a 2-week high earlier in the session on expectations of improved demand for US cargoes.
Soybeans edged higher after declining on Monday, with forecasts showing much needed rains in dry parts of Argentina's crop belt.
"Buyers have plenty of options as there is too much wheat around," said Phin Ziebell, agribusiness economist at National Australia Bank in Melbourne.
"Prices came up a little bit on news of higher demand, but there is no change in fundamental picture of large supplies. You need a big supply disruption to sustain higher prices."
The Chicago Board of Trade most-active wheat contract had slid 0.6 percent to $4.14-3/4 a bushel by 0346 GMT, after touching the highest since Nov. 28 at $4.18-1/2.
Soybeans rose 0.1 percent to $10.32 a bushel and corn gave up 0.1 percent to $3.60 bushel.
The wheat market rose on Monday on hopes of renewed demand for US shipments.
Saudi Arabia's main state grain importer, the Saudi Grains Organization, said on Monday it had bought 725,000 tonnes of hard wheat.
Traders said they expected part of the purchase to be sourced in the United States, which has struggled to gain traction in the wheat export market as cheaper supplies have been readily available from other countries.
Wheat prices in Russia, the world's largest exporter, fell last week due to stormy weather at the country's ports and as global benchmarks dropped on forecasts of hefty world inventories and bumper crops.
Black Sea prices for Russian wheat with 12.5 percent protein content for December supply were at $182 a tonne on a free-on-board basis at the end of last week, down $2 from a week earlier.
Soybeans were under pressure on forecasts of rains across key producing areas in Argentina.
Commodity funds were net buyers of CBOT corn and wheat futures contracts on Monday, traders said. The funds were net sellers of soybeans and soymeal, while they were net even in soyoil.
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