PARIS/SINGAPORE: Chicago wheat edged lower on Tuesday, coming off an earlier two-week high as ample world supplies and investor caution before a US interest rate decision tempered support from export hopes.
Soybeans edged higher after declining on Monday under pressure from forecasts of rain relief for Argentine crops while corn ticked lower in generally subdued trading on grain markets.
The Chicago Board of Trade's most-active wheat contract had slid 0.6 percent to $4.15-3/4 a bushel by 1349 GMT, having earlier touched its highest since Nov. 28 at $4.18-1/2.
"Buyers have plenty of options as there is too much wheat around," said Phin Ziebell, agribusiness economist at National Australia Bank in Melbourne.
"Prices came up a little bit on news of higher demand, but there is no change in the fundamental picture of large supplies. You need a big supply disruption to sustain higher prices."
The wheat market rose on Monday as a 725,000 tonne hard-wheat purchase by Saudi Arabia's main state grain importer boosted export sentiment.
However, the US Department of Agriculture's upward revision on Friday to its monthly forecast of world wheat stocks to a new record has underlined a backdrop of hefty supplies.
Early forecasts have also projected another big Russian wheat harvest next year while a first official reading of soft wheat sowings in France on Tuesday estimated that the area would equal an 80-year high of 5.2 million hectares harvested this year.
The small adjustments on grain markets were encouraged by a cautious mood among investors ahead of a two-day US Federal Reserve meeting that is widely expected to conclude with a decision to raise interest rates.
CBOT Soybeans rose 0.6 percent to $10.36-3/4 a bushel and corn gave up 0.3 percent to $3.59-1/2 a bushel.
"Beneficial rains in Argentina were weighing on soybean prices (but) this product is still finding support from buoyant export activity before South American harvest," consultancy Agritel said in a note.
The USDA announced on Monday the sale of 265,000 tonnes of soybeans to China, extending a run of strong US sales to the world's biggest importer of the oilseed.
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