SINGAPORE/PARIS: Chicago soybean futures ticked higher on Wednesday after declining for the last four sessions to their lowest since early October on pressure from crop-boosting rains across Argentina's drought-hit farm belt.
Wheat dipped but losses were limited by expectations of improved demand for US wheat which has struggled to win business due to stiff competition from the Black Sea region.
The Chicago Board of Trade most-active soybean contract was up 0.2 percent at $9.58-1/4 a bushel by 1220 GMT, while wheat eased 0.3 percent to $4.18-1/4 a bushel.
Corn gained 0.2 percent to $3.48-1/4 a bushel.
Brazil and Argentina are on track for another year of bumper soybean production as rains ease concerns over dry weather brought by the La Nina weather pattern.
Rains that fell on Argentina's main farm belt over the weekend brought relief to parched soybean and corn-growing land, meteorologists said on Monday, allowing the planting of crops to resume in most of the affected areas.
Brazilian farmers are expected to produce 114.57 million tonnes of soybeans in the 2017/18 crop cycle, consultancy Safras & Mercado said on Monday. The figure represents a slight downward adjustment from an October estimate of 114.7 million tonnes, although it would still be an all-time high for Brazil.
"There is not much upside potential for soybeans as there is so much inventory in the US and the weather has improved in Argentina," said one Singapore-based trader.
"US wheat is quite competitive in the Asian market as Australia prices have been moving higher due to quality issues."
Australia, a key wheat exporter to Asia, has seen adverse weather this year, hitting yields as well as the quality of grains.
In the United States recent price declines in wheat have attracted fresh export interest. US wheat was the cheapest origin grain offered in an Iraqi tender for hard milling wheat.
Commodity funds were net buyers of Chicago Board of Trade corn and soyoil contracts on Tuesday and net sellers of soybeans, soymeal and wheat, traders said.
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