Soy, corn futures about flat; wheat up after 2-week low

CHICAGO: US grain and soy futures were nearly unchanged on Thursday in largely technical-driven trading as investors awaited supply and demand estimates from an annual Department of Agriculture forum due early on Friday.

USDA on Thursday predicted US plantings of corn and soybeans at 90 million acres each, in estimates that were generally in line with analyst expectations.

The government will issue longer-term supply and demand forecasts as well as weekly US export sales results on Friday.

Soybean and corn futures were roughly flat at the Chicago Board of Trade but still near the multimonth peaks notched on Tuesday, when trading resumed following disappointing weekend rainfall in drought-stricken Argentina.

"The trade has inched down their implied Argentina (soy) production," said Futures International analyst Terry Reilly. "That's what's supporting beans, along with the lower dollar and stronger crude oil."

CBOT March soybeans eased 3/4 cent to $10.33-1/2 per bushel as of 11:41 a.m. CST (1741 GMT). CBOT March corn was up 1/4 cent at $3.66 per bushel and CBOT March wheat up 2-1/4 cents at $4.49-1/2.

Wheat steadied after a two-week low linked to beneficial moisture in the US Plains and a backdrop of ample global supplies.

Argentina remained the focus for soybean markets, with traders assessing production downgrades by forecasters along with prospects for light rain next week and a bumper harvest in Brazil.

"Argentina's output can go down further if the weather does not improve," said one India-based agricultural commodities analyst at an international bank. "But the country has 14 million tonnes of inventory, it is enough to restrict further gains in prices. Brazil has another huge crop on the way."

Intermittent showers were expected over the next week in some parts of Argentina, the Commodity Weather Group said in a note.

"Wetter risk (is showing) on some models in 6-10 days, but our outlook would keep up to 60 percent of Argentine corn/soy under moisture stress," it said.