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|18 October, 2018

Soybeans down on U.S. harvest pressure, wheat drops for 3rd day

The most-active soybean contract on the Chicago Board of Trade fell 0.8 percent to $8.79 a bushel

Image used for illustrative purpose. A truck driver unloads his cargo of corn into a chute at the Lincolnway Energy plant in the town of Nevada December 6, 2007.

Image used for illustrative purpose. A truck driver unloads his cargo of corn into a chute at the Lincolnway Energy plant in the town of Nevada December 6, 2007.

REUTERS/Jason Reed

Chicago soybean futures slid on Thursday, falling for two out of three sessions, as the harvest of a record U.S. crop picked up steam this week.

There was additional pressure on the soybean market stemming from a lack of demand for U.S. supplies from China, the world's biggest importer, amid a trade war between the two countries.

The most-active soybean contract on the Chicago Board of Trade fell 0.8 percent to $8.79 a bushel by 0247 GMT.

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Soybeans on Monday rose to their highest since Aug. 21 at $8.92 a bushel after rains delayed the harvest in key parts of the U.S. Midwest.

Wheat was down 0.4 percent at $5.15-1/4 a bushel, after ending down 1.1 percent on Wednesday and corn lost 0.5 percent to $3.72-1/2 a bushel, having closed down 0.3 percent in the previous session.

"Soybean harvest is expected to gather pace as dry weather returns to the U.S. Midwest, it will keep prices under pressure," said Phin Ziebell, agribusiness economist at National Australia Bank.

"For wheat, there are plenty of supplies coming from the Black Sea region but going forward there could be higher demand for U.S. wheat as supplies tighten in Russia."

Soybean prices have been pressured by forecasts of dry weather across the U.S. Midwest, which would likely aid progress on harvesting.

Traders are also looking towards the latest weekly export sales report from the U.S. Department of Agriculture (USDA), due on Thursday. Analysts expect the government to report U.S. soymeal sales in the latest week at 150,000 to 450,000 tonnes.

The wheat market is being weighed down by the strong pace of exports from top supplier Russia.

U.S. wheat exports look set for a strong second half to the 2018/19 season when shipments from Russia are expected to slow, the chairman of the USDA's World Agricultural Outlook Board said on Tuesday.

Lower production of corn-based ethanol kept a lid on corn prices.

The U.S. Energy Information Administration said weekly U.S. output of corn-based ethanol fell to 1.01 million barrels per day, the lowest since April, while stocks of the biofuel rose to 24.13 million barrels. (Reporting by Naveen Thukral; Editing by Christian Schmollinger)

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