PARIS/SINGAPORE: Chicago soybean futures edged lower on Thursday, snapping three sessions of gains that had taken it to a two-week high, as investors adjusted positions ahead of a closely watched global crop report from the US government.
Corn and wheat also eased following two sessions of gains.
Grain markets are awaiting the US Department of Agriculture's (USDA) monthly report on US and world supply and demand, due at 1700 GMT.
Before that, traders will get an update on demand in weekly US export sales at 1330 GMT.
The Chicago Board Of Trade most-active soybean contract fell 0.5 percent to $10.53 a bushel by 1229 GMT. On Wednesday, prices had hit their strongest since Jan. 25 at $10.59-3/4.
Corn fell 0.4 percent to $3.69-1/4 a bushel and wheat lost 0.5 percent to $4.30-1/2 a bushel.
Chicago soybeans have been buoyed by sustained export demand for US supplies, as well as rally in Chinese prices following last week's Lunar New Year holiday, countering pressure from harvest progress in Brazil and improving weather in Argentina.
"Soybeans are being supported by Chinese buying after the break, but overall the weather looks good for the harvest in Brazil and crop development in Argentina," said Rajesh Singla, head of agriculture research at Societe Generale.
"The key to watch in the USDA report is Chinese demand estimates for soybeans."
Analysts on average expect the USDA to trim its US and global soybean ending stocks estimates, according to a Reuters poll.
Brazil's government agency Conab on Thursday raised its forecast of the country's 2016-17 soybean crop to a new record of 105.6 million tonnes, up from January estimate of 103.8 million.
This was broadly in line with the trend in a Reuters poll, which on Wednesday showed an average estimate of 104.7 million tonnes, compared with 103.5 million in January.
Analysts expect the USDA to make only minor adjustments to its corn and wheat balance sheets.
Wheat prices remained capped by record global supplies expected this season and the absence so far of severe winter threats to dormant crops in northern hemisphere.
However, a cold spell in the Black Sea region was being monitored as some zones were lacking protective snow cover.
"Low temperatures in place in southern parts of Ukraine and Russia from the start of the week could put winter crops at risk," consultancy Agritel said in a note.
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