Soybeans pause near 4-year high with tight supply in focus

PARIS/SINGAPORE: Chicago soybean futures were little changed on Thursday, consolidating after hitting a four-year high in the last session following a U.S government forecast of tight supplies.

Corn was also near flat, pausing after a 3-1/2 month high on Wednesday that was similarly triggered by the US Department of Agriculture's (USDA) monthly crop report projecting US corn and soybean stockpiles at a seven-year low.

Wheat eased to a one-week low as the market set brisk international demand and Russian plans to cap exports later this season against the prospect of a bumper Australian harvest and increased northern hemisphere plantings.

The most-active soybean contract on the Chicago Board Of Trade (CBOT) was up 0.1% at $11.53-3/4 a bushel at 1152 GM. On Wednesday, prices reached their highest since June 2016 at $11.62-1/4.

CBOT corn was unchanged on the day at $4.17-1/4 a bushel. It hit its highest since July on Wednesday before closing lower.

Wheat was 0.4% down at $5.95-1/2 a bushel, after earlier easing to its lowest since Nov. 2.

"US markets have marked a pause after the jump in prices following a stunning USDA report for corn and soybeans," consultancy Agritel said in a note.

"Demand remains strong, with China expected to import 100 million tonnes of soybeans this year... In corn, the situation is also becoming very stretched."

The much tighter US soybean and corn supply projected by the USDA has put more attention on production prospects in South America, with persistent dryness in parts of Brazil and Argentina causing concern.

Traders were also monitoring strike action in Argentina that has delayed loadings at different grains ports.

Wheat markets showed little reaction to a Russian government proposal for a 15 million tonne grain export quota for Feb. 15 to June 30 next year, with the volume seen as in line with expectations.