US soy falls on seeding estimate, wheat, corn steady
Corn and wheat futures were largely unchanged with support stemming from a broad-based strength in the commodity markets on perceived progress in the euro zone debt crisis and upbeat corporate earnings.
"Soybeans rose sharply last week and there could be some profit taking now as Chinese buyers are absent from the market," said Ker Chung Yang, a commodities analyst at Phillip Futures in Singapore.
"I think the key factor weighing on prices today is estimates of higher acres in the US".
Analytical firm Informa Economics raised its forecast of US 2012 soybean seedings to 77.0 million acres from its previous projection of 75.8 million, according to traders.
However, it cut forecast of US 2012 corn plantings to 93.1 million acres from its previous forecast of 94.3 million, a supportive factor for corn values.
Chicago Board of Trade November soybeans fell 0.8 percent to $12.60-1/2 a bushel by 0306 GMT, while December wheat slid a quarter of a cent to $6.22-1/2 a bushel. December corn fell three quarters of a cent to $6.39-1/4 a bushel.
US soybean futures rose to a two-week high on Friday due to tight supplies, firm cash markets and a weak dollar, posting gains for a fifth straight day and snapping a five-week losing streak.
Soy rose nearly 10 percent last week, notching up its biggest weekly gain on a percentage basis since August 2009 as farmers refuse to sell soybeans despite a rapid harvest of the 2011 crop.
Net export sales of US soybeans a week before last slipped 9 percent to a three-week low of 672,400 tonnes, near the low end of trade estimates for 650,000 to 750,000 tonnes, according to US Agriculture Department data.
For corn and wheat, there was support from rising commodities and Asian shares.
Asian shares rose on Monday and the euro held firm amid hopes that a crucial week for the euro zone crisis will see policymakers finally come up with a comprehensive plan to resolve the region's debt woes and recapitalise its banks.
Commodities were mostly higher on hopes that Europe will avoid a meltdown in the financial system and on signs that China, a key source of resources demand, is containing inflation and so more likely to avoid an economic "hard landing".
The grain markets were also underpinned by USDA's export sales report which showed net US corn exports in the week ended Oct. 6 at a three-month high and wheat at a three-week top.
Corn sales last week were expected to have been even stronger, buoyed by a mammoth 900,000-tonne sale to emerging importer China, which seized upon a nearly 25-percent drop in corn prices from August highs to book its biggest purchase on months.
Copyright Reuters, 2011