Soybeans edge lower with South American weather, USDA report in focus

Adverse South America crop weather underpins soybeans

  

PARIS/SINGAPORE- Chicago soybean futures inched down on Tuesday, consolidating after hitting near a seven-year peak a day earlier and ahead of a U.S. government report expected to trim projected global supplies amid adverse crop weather in South America.

Corn eased after rising on Monday, while wheat recovered after Monday's fall as traders adjusted positions before the U.S. Department of Agriculture's (USDA) monthly world crop report at 1700 GMT.

The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.2% at $14.30-1/2 a bushel by 1322 GMT. On Monday, prices hit their highest since June 2014 at $14.60 before paring gains by the close.

Adverse crop weather in South America is adding to concerns about short-term supply alternatives to dwindling U.S. stocks.

"The delays to harvesting of the Brazilian soybean crop caused by rainfall and the risks to the Argentinian crop posed by hot and dry weather remain the number one topic on the markets," Commerzbank said in a note.

Brazilian farmers had harvested an estimated 35% of the planted soybean area through last Thursday, down from 49% a year earlier and the slowest pace in a decade, agribusiness consultancy AgRural said. 

Analysts expect the USDA will lower on Tuesday its estimates for 2020/21 U.S. and world ending stocks for soybeans and corn. 

A rally in vegetable oils, including a 10-year high for palm oil, which competes with soyoil, has also supported oilseed prices. 

CBOT corn futures eased 0.9% to $5.42 a bushel and wheat Wv1 added 0.7% to $6.50-3/4 a bushel.

Wheat was pressured on Monday by forecasts for showers in the southern U.S. Plains and Midwest.

Traders were assessing mixed U.S. crop conditions. USDA winter wheat ratings released after the market close on Monday showed a weekly decline in Kansas, the top U.S. producer, but a sharp improvement in Oklahoma.

(Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Subhranshu Sahu and Paul Simao) ((gus.trompiz@thomsonreuters.com; +33 1 49 49 52 18; Reuters Messaging: gus.trompiz.thomsonreuters.com@reuters.net))

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