Soybeans retreat from over 2-year high ahead of USDA report

SYDNEY/LONDON: US soybean futures edged lower on Thursday for the first time in 13 sessions, as traders locked in profit after the oilseed climbed to its highest in more than two years following strong demand from China - the world's largest importer.

Grain markets are turning their attention to monthly supply-and-demand forecasts by the US Department of Agriculture (USDA), scheduled for Sept. 11, to gauge the impact of dry weather and storm damage on US corn and soybean harvest prospects.

Analysts expect the government to lower its forecasts of US 2020/21 corn production and ending stocks, although stockpiles should remain relatively plentiful.

Corn firmed on Thursday, while wheat rose for the first time in six sessions.

The most active soybean futures on the Chicago Board Of Trade were down 0.3% at $9.75-1/2 a bushel by 1055 GMT, after having risen 0.6% on Wednesday, when prices hit a June 2018 high of $9.81-3/4 a bushel.

"Further and greater Chinese purchases may be needed for CBOT Soy to break above 10 dollars/bu," Rabobank said in a note.

"With funds closing on a record net long and a decent US harvest approaching, we may see headwinds building above 10 dollars and a greater potential for a sharp drop than a major rally."

The USDA confirmed soybean sales to China for a fourth straight business day, announcing sales of 238,000 tonnes to the country and a further 132,000 tonnes to unknown destinations.

The most active corn futures were flat at $3.60-1/4 a bushel, having closed 0.4% lower in the previous session.

A case of African swine fever (ASF) has been confirmed in a wild boar in eastern Germany. Authorities have banned corn harvesting in the area where swine fever was found.

The most active wheat futures were up 0.7% at $5.47-3/4 a bushel, while December wheat on Paris-based Euronext rose 0.5% to 189.75 euros a tonne.

The gains in wheat came amid concerns over production in the Black Sea due to dry weather in Ukraine and Russia.

Saudi Arabia is seeking 715,000 tonnes of wheat in an international tender, for delivery between November and January.