Soybeans extend losses, near five-month low

SYDNEY/PARIS: US soybeans edged lower on Monday, hovering close to a five-month low amid ample global supplies of the oilseed and strong South American production.

Corn edged higher, rebounding from a two-month low touched in the previous session, while wheat fell nearly 0.5 percent.

The most active soybean futures on the Chicago Board Of Trade fell 0.3 percent to $9.73 a bushel after hitting $9.72-1/4 a bushel, a five-month low already hit on Friday.

"The soybean price is continuing to fall as the new week of trading gets underway," Commerzbank said in a note.

"On the one hand, the expectation of record-high supply from South America is weighing on its price - the crop is just being harvested and finding its way onto the market. On the other, the US Department of Agriculture will be publishing acreage estimates at the end of the week that are expected to show a significant expansion in US soybean acreage this spring."

The Buenos Aires Grains Exchange last week raised its outlook for Argentina's 2016/17 soy crop to 56.5 million tonnes from 54.8 million previously, the latest in a series of upgrades for harvests in South America.

Large South American production is expected to be supplemented by US production, which the US Department of Agriculture is expected to confirm at the end of the week.

US farmers are expected to plant 88.2 million acres of soybeans, a Reuters poll showed.

The most active corn futures rose 0.14 percent to $3.56-3/4 a bushel, having closed down 0.1 percent in the previous session when prices hit a low of $3.55-1/4 a bushel, the lowest since Jan. 13.

The most active wheat futures fell 0.6 percent to $4.22-1/4 a bushel, having closed up 0.8 percent on Friday, with analysts pointing favourable weather forecasts.

The outlook for US wheat production has improved after forecasts for rain this week in the six to 10 days.

Copyright Reuters, 2017