US soybean futures edge up but remain near 10-year low

LONDON: Chicago soybean futures edged higher on Wednesday but remained in striking distance of the prior session's 10-year low with a record U.S. crop and crop-friendly weather in Brazil helping to keep the market on the defensive.

Dealers said trade conflict between the U.S. and top soybean buyer China also contributed to the current weakness in prices.

"The fear that the trade conflict will continue for some time yet, coupled with the record U.S. crop and good weather for planting in Brazil, is weighing on the soybean price," Commerzbank said in a market note.

The most-active soybean contract on the Chicago Board Of Trade was up 0.4 percent at $8.17 a bushel, as of 1109 GMT, edging away from a 10-year low of $8.12-1/4 a bushel set during the previous session.

The U.S. Department of Agriculture has forecast a record U.S. soybean crop this year.

The agency said the U.S. soybean harvest was 6 percent complete, above the five-year average of 3 percent. U.S. corn harvesting was 9 percent complete, ahead of the five-year average of 6 percent, it said.

"Spot soybean prices fell sharply in Brazil and the United States yesterday," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.

"That suggests that some more general harvest pressure is beginning to affect the whole oilseed market rather than just U.S. prices falling to pay for China's tariff."

Brazilian farmers sped up soybean and corn plantings this week for the country's next grain crop, under favourable weather conditions and a positive market outlook.

Soybean planting in Brazil's second-largest producing state of Paran? reached 9 percent of the expected final area this week, up 8 percentage points from last week and compared with only 1 percent at this time last year, as ample soil moisture allowed for a quick start of fieldwork.

Soybeans have faced pressure from the U.S.-China trade dispute. Beijing added $60 billion of U.S. products to its import tariff list in retaliation for President Donald Trump's planned levies on $200 billion worth of Chinese goods.

China is by far the world's top soybean importer, while the United States is the No. 2 exporter.

Wheat prices were higher, boosted by possible frost damage over the weekend in western Australia and further buying by top importer Egypt.

Turkey's state grain board has also issued a tender for around 252,000 tonnes of wheat.

CBOT's most active wheat contract rose 1.4 percent to $5.17-1/2 a bushel while December milling wheat on Paris-based Euronext was up 1.2 percent at 201.50 euros a tonne.

Corn futures edged higher with the most active CBOT contract  up 0.2 percent at $3.44 a bushel.