US soyabean futures eased on Tuesday on crop-boosting rains in South America and as investors squared positions ahead of a key US Department of Agriculture (USDA) crop supply-and-demand report due at the end of the week.
Corn and wheat futures fell for a third straight session as a firming US dollar and rising US-Iran tensions weighed on prices.
Investors were also awaiting further details on a Phase 1 US-China trade deal that is expected to significantly bolster Chinese purchases of US agricultural goods.
Grain markets remained risk-averse, however, ahead of Friday's USDA report which is expected to show smaller US corn and soya crops, lower US winter wheat seedings and tighter end-of-season grain stocks. Traders are monitoring corn and soyabean crop weather in Brazil and Argentina as farmers in top soya exporter Brazil get set to begin harvesting a massive crop in the coming weeks.
Crop conditions are favourable in much of Brazil and Argentina and the key Brazilian soyabean state of Rio Grande do Sul, which has been dry, is forecast to receive rain later this week, according to Kyle Tapley, meteorologist with Maxar.
Analysts polled by Reuters ahead of Friday's USDA report expect minimal adjustments to the agency's already-lofty prior estimates for South American corn and soya crops.
Chicago Board of Trade March soyabeans were down 1-1/2 cents at $9.43-1/4 a bushel at 12:41 p.m. CST (1841 GMT). March corn shed 3/4 cent to $3.84 a bushel while CBOT March wheat fell 2-1/2 cents to $5.47-1/2 a bushel.
Optimism that China will accelerate purchases of US farm goods has been supportive for Chicago markets, particularly soyabeans, with officials expected sign a Phase 1 trade deal next week.
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