Soybeans steady near 4-year top as market awaits USDA forecasts

PARIS/SINGAPORE: Chicago soybean futures inched higher on Monday, staying close to last week's four-year high as dry crop conditions in South America and strong Chinese demand kept the focus on tightening supplies.

Corn and wheat eased as grain markets consolidated before Tuesday's widely followed world supply-and-demand outlook from the US Department of Agriculture (USDA).

China brought in 8.69 million tonnes of soybeans in October, up from 6.18 million tonnes in the same month last year, as crushers received earlier booked Brazilian beans and as US beans started to flow in, data showed.

In the latest flash export announcement, the USDA reported on Friday the sale of 132,000 tonnes of soybeans to China, along with the sale of 272,150 tonnes to unknown destinations.

"Chinese soybean imports have been strong in recent months," said Phin Ziebell, an agribusiness economist at National Australia Bank. "Demand has picked up as China is rebuilding its pig herd."

In Brazil, the world's biggest soybean exporter, Chinese demand has led harvest supplies to run low and Brazil is importing some US soybeans.

Dry weather has also hampered the start of soybean planting in Brazil, although showers have aided field work in Brazil and in fellow exporter Argentina.

Traders were weighing an initial USDA 2021 projection published on Friday, pointing to increased plantings of soybeans and wheat and less corn.

The most-active soybean contract on the Chicago Board Of Trade (CBOT) was up 0.3% at $11.05-1/2 a bushel by 1143 GMT.

Soybeans hit their highest since July 2016 last week at $11.12-3/4.

Corn was down 0.9% at $4.03-1/4 a bushel, while wheat eased 0.5% to $5.98-3/4 a bushel.

Wheat has drawn support from importer demand, as well as parched sowing conditions in some US and Russian wheat belts.

A large purchase by Saudi Arabia on Monday was expected to be partly sourced from Australia, suggesting competitive prices from the southern hemisphere exporter ahead of a large expected harvest.