Wheat eases for second day on ample global supply, soy prices firm

SINGAPORE: Chicago wheat futures lost more ground on Tuesday, falling for a second consecutive session in the face of abundant global supplies.

Soybean prices ticked up on strong demand, although expectations of near-record US production kept a lid on the market.

The Chicago Board of Trade most-active wheat contract had eased 0.2 percent to $4.42-1/2 a bushel by 0305 GMT, while soybeans added 0.1 percent to $9.68-1/2 a bushel. Corn gained 0.1 percent to $3.51-3/4 a bushel.

"It is going to be hard for prices to rally because of the abundance of global oilseed and grains supplies," said Simon Clancy, a broker at IKON Commodities in Sydney.

"Australian prices are higher just to ensure enough grains remain at home for domestic consumption."

The Australian government has lowered its estimate of the country's 2017/18 wheat crop to 21.64 million tonnes, an eight-year low, from a March forecast of 23.98 million.

But globally there are plenty of wheat supplies.

Some focus is shifting to a tender issued by Egypt's General Authority for Supply Commodities to buy an unspecified amount of wheat from global suppliers for shipment from Oct. 21-31. Results are expected later on Tuesday.

Wheat exporters from the Black Sea region and Europe have in recent years won the bulk of the tender business coming from Egypt, the world's biggest importer.

The US Department of Agriculture (USDA) in its weekly crop progress report said the US corn harvest was 7 percent complete, behind the five-year average of 11 percent.

The soybean harvest was 4 percent complete, close to its average pace of 5 percent, the agency said after the market closed on Monday.

US and global supplies of corn remain ample. The USDA last week forecast a US corn yield of 169.9 bushes per acre and 2017-18 ending stocks at a hefty 2.3 billion bushels.

Soybean prices have been underpinned by strong demand. The USDA through its daily reporting system said on Monday that private exporters sold a total of 387,000 tonnes of US soybeans, including 261,000 tonnes to China, the world's top soy buyer.

Money managers reversed their six-week selling streak across Chicago-traded grains and oilseeds in the week ended Sept. 12 even amid some relatively bearish figures from the USDA.