Soybeans drop to one-week low, wheat extends fall

PARIS: Chicago soybean futures edged lower in hesitant trade on Thursday after a US government report earlier this week failed to add bullish momentum to prices already hovering near multi-year highs.

Wheat fell on ample global supply and improving US weather in the Midwest, extending Wednesday's drop, while corn ticked higher after falling for two sessions.

Expectations of an improvement in North American weather weighed on the markets.

"Evidence has been accumulating that the current La Nina is now dissipating faster," said Tobin Gorey of the Commonwealth Bank of Australia. "That makes a dry planting window in North America considerably less likely."

Operators were also waiting for the weekly of US grains and soy export sales due to be released later in the day.

The most-active soybean contract on the Chicago Board Of Trade (CBOT) was down 0.1% to $14.08-1/2 a bushel at 1230 GMT, after touching a session low of $14.00-3/4 a bushel - the weakest since March 3.

Corn was up 0.4% at $5.36 a bushel, having closed down 2.1% in the previous session, and wheat fell 0.9% to $6.46-1/2 a bushel, having closed down 0.6% on Wednesday.

Argentina's Rosario Grains Exchange on Wednesday cut its estimate of the country's 2020/21 soybean harvest to 45 million tonnes from 49 million, citing dry weather.

The US Department of Agriculture (USDA) on Tuesday raised its forecast for global ending stocks of both corn and soybeans, bucking trade expectations for a reduction.

FranceAgriMer raised its monthly forecast of soft wheat stocks for the end of the 2020/21 season by more than 100,000 tonnes to 2.7 million tonnes on Wednesday.

Commodity funds were net sellers of Chicago Board of Trade corn, soybean, soymeal, wheat and soyoil futures contracts on Wednesday, traders said.