Soybeans ease from 2-week high as USDA data, China talks awaited

PARIS/SINGAPORE: Chicago soybean futures ticked lower on Monday, easing from a two-week high before the weekend, as the market awaited the resumption of US grain data after a government shutdown and developments in trade talks between Washington and Beijing.

Prices remained underpinned by concern that adverse weather in top exporter Brazil will lead to more harvest forecast cuts.

Corn was flat while wheat edged higher after a two-session drop, supported by rising prices and tightening supply in Russia, which could fuel demand for US exports.

The Chicago Board of Trade most-active soybean contract was down 0.4 percent at $9.21-1/4 a bushel by 1325 GMT. On Friday, it had climbed to its highest since Jan. 9 at $9.26.

A Chinese delegation is due to travel to Washington this week for fresh talks to resolve a tariff dispute that has disrupted US soybean exports to China.

Chinese state-owned firms resumed purchases of US soybeans in December as part of a negotiating truce, but confirmed deals have dried up this month, with a lack of export data during a partial US government shutdown adding to uncertainty.

"China bought 5 million tonnes of US beans but there is little evidence of any further purchases," said one Singapore-based trader.

Traders are waiting to see when the US Department of Agriculture (USDA) will restart daily and weekly publications of export sales.

Following Friday's agreement between US President Donald Trump and Congress to reopen temporarily the government, the USDA's chief economist said he expects the agency will release a monthly crop supply/demand report as planned on Feb. 8 if the agency's offices reopen on Monday.

Soybean and corn prices continued to find support in dry conditions in Brazil that have reduced yield prospects.

"As the Brazil soybean harvest likely exceeds 10 pct of total area, warmth and dryness to continue into February, further reducing production," Thomson Reuters Agriculture Research analysts said in a note.

However, weather forecasts showed some showers across Brazil in the week ahead, including in parched northern areas, while also pointing to less moisture in Argentina where flooding has disrupted crop planting.

In wheat, traders are assessing the scope for an upswing in US exports at the expense of Russia.

Consultancy Sovecon on Monday estimated January exports of wheat, barley and maize (corn) from Russia at 2.35 million tonnes, down from 4.3 million tonnes in December.]

At the same time, the firm on Friday raised its forecast of Russia's 2018/19 wheat exports to 35.6 million tonnes from 35.1 million previously.