Soybeans dip ahead of USDA reports, market eyes Latam crop outlook

SINGAPORE: Chicago soybeans edged lower on Tuesday as investors awaited the US government's forecast on global grain and oilseed production later in the day, with a focus on South American output.

Corn lost ground, while wheat was unmoved.

"Attention is on the USDA report, the market is expecting it to be bullish as it is likely to trim global corn and soybean inventories," said one Singapore-based trader. "But it can turn out to be the other way, less bullish than expected."

The most-active soybean contract on the Chicago Board of Trade (CBOT) down 0.1% to $13.71 a bushel, as of 0441 GMT. The market jumped to its highest since June 2014 at $13.88-3/4 a bushel on Monday.

Corn fell 0.5% to $4.90 a bushel, while wheat was flat at $6.34-3/4 a bushel.

The market is looking ahead to the upcoming US Department of Agriculture (USDA) reports scheduled for release at 1700 GMT.

The reports are expected to show tightening supplies of key crops and may forecast higher demand from some major importers.

Grain markets have soared to the highest levels in years as rising global demand and hot, dry crop weather in South America reinforced concerns about tightening world supplies.

Argentine farmers said on Monday they would continue their ban on selling crops despite the government's decision to amend the corn export suspension that has triggered a sales strike in the South American grains powerhouse.

The government replaced the two-month export suspension with a temporary daily limit of 30,000 tonnes of corn that can be sold into the international market. But the country's main farm groups said they objected to the new policy as well.

Russia is considering raising its wheat export tax from the currently planned 25 euros ($30) per tonne between Feb. 15 and June 30, the head of the Russian Union of Grain Exporters, Eduard Zernin, told Reuters on Monday.

Commodity funds were net sellers of CBOT corn, wheat, soybean and soyoil futures contracts on Monday and net buyers of soymeal futures, traders said.