Soybeans fall to 10-day low as rains boost South American output

SYDNEY: US soybean futures fell on Monday for a fourth consecutive session as forecasts for rain across South America pushed prices to a 10-day low on expectations of increased output amid already ample global supplies.

Wheat fell for a sixth straight session to hit a six-week low amid bumper global production. Corn also fell.

The most active soybean futures on the Chicago Board Of Trade were down 0.4 percent to $9.85-3/4 a bushel by 0237 GMT, near the session low of $9.85-1/2 a bushel - matching a low hit on Dec. 1. Soybeans closed down 0.2 percent on Friday.

Soybean losses had been checked by concerns about production in Argentina, although updated weather models call for much needed rains across several regions.

"Weather forecasters are looking more favourably for a rain event for these regions in mid-December," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.

Brighter Argentina production would lift output from South America, adding to competition to US exporters.

Consultancy AgRural on Friday raised its forecast for Brazil's 2017/18 soybean harvest to 112.9 million tonnes from 110.2 million.

The US Department of Agriculture (USDA) said earlier on Friday that private exporters reported the sale of 268,000 tonnes of soybeans for delivery to China during the 2017/18 marketing year.

The most active corn futures fell 0.4 percent to $3.51-1/4 a bushel, having gained 0.4 percent in the previous session.

The most active wheat futures dropped 0.5 percent to $4.17 a bushel - the lowest since November 1.

Analysts said wheat is under pressure amid bumper global production, supplemented by soaring Canadian output that will see US exporters continue to struggle to find business with overseas buyers.