GRAINS-Soybeans Fall For Third Day On U.S. Inventories, Brazilian Crop F’cast

(Reuters) –  Chicago soybean futures slid for a third consecutive session on Wednesday, with the market pressured by expectations of higher stocks in the United States following slower exports and a forecast of increased production in Brazil.

Wheat gained for a second session while corn dipped after closing higher on Tuesday ahead of a key supply-demand report to be issued by the U.S. Department of Agriculture on Friday.

The Chicago Board Of Trade most-active soybean contract fell 0.3 percent to $9.60-3/4 a bushel at 1214 GMT, having lost almost 1 percent since Monday.

Wheat added 0.3 percent to $4.33-1/2 a bushel, having closed up 1 percent on Tuesday and corn gave up 0.1 percent to $3.48-1/2 a bushel, having gained 0.5 percent in the previous session.

“There are abundant soybean supplies and the new Brazilian crop forecast will add more pressure on prices,” said one Singapore-based trader, despite some market concerns about the impact of adverse weather in Argentina.

Analysts expect the USDA to boost U.S. soybean stocks after a bumper harvest at the end of last year and slowing exports due to quality issues.

Brazil’s 2017/18 soybean crop is expected to be 111.8 million tonnes, 1.9 percent higher from the previous estimate, Céleres consultancy said on Tuesday.

Farmers harvested a record crop of 114 million tonnes in the last season.

For wheat, the USDA is expected to show smaller U.S. winter wheat seedings, in the agency’s first forecast for 2018.

Russian wheat continues to pose stiff competition in the well-supplied global market but supportive news came from other major Black Sea grain producer Ukraine where exports are running behind last season with 11.4 million tonnes of wheat exported since July, down from 12 million tonnes at the same point last year, the agriculture ministry said on Wednesday.

Farming agency FranceAgriMer lowered its forecast for French soft wheat exports outside the European Union this season for a third straight month on Wednesday, now seen at 9.3 million tonnes, down from 9.5 million last month.

Wheat prices were capped by warmer temperatures this week in the U.S. Plains which alleviated some concerns that dormant winter wheat plants could be damaged.

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