GRAINS-Soybeans Ease as Dry Weather Seen Aiding U.S. Harvest, Wheat Up

(Reuters) – Soybean futures eased on Wednesday, falling for three out of four sessions on expectations dry weather in the days ahead will boost U.S. harvest which has been hit by heavy rains.

Wheat rose, adding to Tuesday’s more than two percent rally, with the market underpinned by demand for U.S. shipments at current prices and rains threatening the Australian crop.

Chicago Board of Trade most-active soybean contract lost 0.3 percent to $9.49-1/2 a bushel by 0357 GMT, after gaining 0.8 percent on Tuesday.

Wheat rose 0.3 percent to $4.05-1/4 a bushel and corn was unchanged at $3.31-3/4 a bushel.

“The US soybean harvest is currently running a little behind schedule, but progress should improve with some drier weather this week,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.

U.S. corn and soybean harvests have been advancing slightly slower than average, USDA data showed on Monday.

In wheat, the market is expecting U.S. exports of the grain to bounce back at current prices.

“U.S. export inspections of wheat were strong again last week,” said Gorey. “Season 2016 exports are well higher than the disappointing sales in 2014 and 2015.”

There was additional support for the wheat market with Australian wheat output likely to fall short of official estimates of near record volumes as heavy rains exacerbate recent damage to the crop.

More showers were predicted later this week in eastern Australia after near-record rain earlier in September, and the excess moisture would likely add to crop loss in the part of country that typically produces high-protein wheat.

Commodity funds were net buyers of CBOT soybeans, corn and wheat futures contracts on Tuesday. They also were net buyers of soymeal and net sellers of soyoil.