SINGAPORE: Chicago soybean futures were little changed on Wednesday with the market trading near its lowest since early October on pressure from crop-boosting rains across Argentina's drought-hit farm belt.
Wheat edged higher as the market was supported by expectations of improved demand for US wheat which has struggled to win business due to stiff competition from the Black Sea region.
FUNDAMENTALS
Brazil and Argentina are on track for another year of bumper soybean production as rains ease concerns over dry weather brought by the La Nina weather pattern.
Rains that fell on Argentina's main farm belt over the weekend brought relief to parched soybean and corn-growing land, meteorologists said on Monday, allowing the planting of crops to resume in most of the affected areas.
Brazilian farmers are expected to produce 114.57 million tonnes of soybeans in the 2017/18 crop cycle, consultancy Safras & Mercado said on Monday. The figure represents a slight downward adjustment from an October estimate of 114.7 million tonnes, although it would still be an all-time high for Brazil.
Recent price declines in wheat have attracted fresh export interest in US shipments. US wheat was the cheapest origin grain offered in an Iraqi tender for hard milling wheat.
Commodity funds were net buyers of Chicago Board of Trade corn and soyoil contracts on Tuesday and net sellers of soybeans, soymeal and wheat, traders said.
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