Soybeans drop for sixth session on expectations of record US output

SINGAPORE: Chicago soybeans lost more ground on Tuesday, with the market trading close to a four-year low hit in the previous session, after a US government agency forecast record production.

Corn ticked lower, giving up some of Monday's gains, which were driven by estimates of lower inventories, while wheat slid.

"The outlook for soybean supplies is bearish for the market," said one trader in Singapore.

"And the demand side is also not looking great."

The most-active soybean contract on the Chicago Board of Trade (CBOT) fell 0.7% to $9.78-3/4 a bushel, as of 0313 GMT, having dropped to its lowest levels since September 2020 in the previous session.

Corn gave up 0.1% to $4.01-1/4 a bushel and wheat lost 0.7% to $5.33 a bushel.

The US Department of Agriculture raised its estimates for corn and soybean production from a month earlier on Monday, adding to expectations of hefty global supplies of both crops.

The agency in its monthly supply-demand report raised the estimate for the 2024/25 soybean crop to a record 4.589 billion bushels, exceeding analysts' expectations and last month's forecast.

It forecast a 2024/25 corn crop of 15.147 billion bushels, up from last month and the July estimate.

China raise 2023/24 soy import forecast in August

However, the USDA lowered the corn ending stocks estimate. US 2024/25 corn end stocks were seen at 2.073 billion bushels, down from the agency's estimate in July of 2.097 billion bushels and lower than analysts' expectations of 2.096 billion bushels.

In a separate report after markets closed, the USDA rated 67% of the nation's corn crop and 68% of US soybean crops in good-to-excellent condition in its weekly crop progress report, unchanged from the previous week.

Egypt's state grains buyer said it bought 280,000 metric tons of wheat in a tender on Monday, falling short of its target of 3.8 million tons.

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