SYDNEY/LONDON- U.S. wheat futures fell to a near two-month low on Thursday, weighed down by plentiful global stockpiles as coronavirus-induced lockdowns led to lower demand for the grain.
Corn edged lower, extending losses into a second session, while soybeans fell for a third straight day.
"The market still seems to be reacting to the USDA's re-framing of the global wheat market's season 2020 outlook to a worse position," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.
The U.S. Department of Agriculture projected that global wheat stocks at the end of the 2020/21 marketing year would rise to a record 310.12 million tonnes, up from 295.12 million at the end of 2019/20.
September wheat futures on Paris-based Euronext fell 0.1% to 183.75 euros a tonne.
Consultancy Strategie Grains boosted its forecast for European Union soft wheat exports in 2019/20 due to strong demand and lower competition.
Wet weather will linger across much of Australia over the next three months, the country's weather bureau said, a forecast that could boost the fortunes of farmers.
Australia's GrainCorp pointed to higher grain exports in the second half of the year.
The most active soybean futures were down 0.45% at $8.35-3/4 a bushel, having closed 1.5% lower on Wednesday.
The losses came despite persistent Chinese demand.
Improved crop prospects in the United States might also fuel pressure on soybeans, analysts noted.
Weather forecasts in the Midwest crop belt were generally favourable for seeding. The USDA said the U.S. soybean crop was already 38% planted and the corn crop was 67% planted by Sunday, both ahead of their respective five-year averages.
"The USDA envisages a small deficit on the soybean market, though at 2 million tons the figure does not differ much from the marginal surplus predicted by the International Grains Council," said Commerzbank in a note.
The USDA confirmed private sales of 396,000 tonnes of U.S. soybeans to China, a day after reporting sales of an additional 136,000 tonnes to the world's leading soy importer.
China is set to speed up purchases of U.S. farm goods and will implement the Phase 1 trade deal with the United States, state-owned agriculture trading house COFCO said.
The most active corn futures were down 0.2% at $3.17-1/2 a bushel, having closed 1.2% lower in the previous session.
(Reporting by Colin Packham in Sydney and Maytaal Angel in London. Editing by Sherry Jacob-Phillips and Kirsten Donovan) ((firstname.lastname@example.org; +61-2 9321 8161; Reuters Messaging: email@example.com))