Soybeans rise from 6-day low, South America outlook caps gains

SYDNEY: US soybean futures edged up on Wednesday from a six-session low hit in the previous session, although gains were capped by forecasts for rain in South America that eased supply concerns.

Corn ticked higher after dropping 1% on Tuesday, while wheat was little changed.

The most active soybean futures on the Chicago Board Of Trade were 0.2% higher at $11.48 a bushel by 0307 GMT, having closed down 1.1% on Tuesday when prices hit the Dec. 2 low of $11.42-3/4 a bushel.

However, easing concerns about the state of crops in South America limited gains.

"South American weather continues to be favourable enough to keep crop worries from evolving into lower crop forecasts for now," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.

Widespread showers in recent days are expected to benefit Brazilian crops, while rain in Argentina has aided planting.

Still, the US Department of Agriculture (USDA) world supply and demand report, due on Thursday, is expected to show smaller South American crops.

More rain is expected in central and southern Brazil and northern Argentina in the six-to-10-day window, and in the 11-to-15-day period in center-west and northeast Brazil, according to Commodity Weather Group.

The most active corn futures were up 0.2% at $4.18 a bushel, having closed down 1% in the previous session.

The most active wheat futures were little changed at $5.70-1/4 a bushel, having closed down 1.3% on Tuesday.

Wheat has been under pressure amid ample global production.