GRAINS-Soybeans Pause After Sharp Drop, Strong Demand Supports

(Reuters) – U.S. soybeans steadied on Monday after losses of more than 1 percent in the previous session, as strong export demand offset pressure from ample global supplies.

Corn edged lower extending losses in a second session, whilewheat rose 0.2 percent.

The most active soybean futures on the Chicago Board Of Trade  was down a thin 0.05 percent by 1147 GMT to $10.11-1/2 a bushel, having closed down 1.2 percent on Friday. Front-month November was unchanged just above the $10 mark.

Soybeans rallied to a two-month high late last week amid brisk

U.S. export pace to China, although ample global production is keeping a lid on prices.

“The funds are well aware that U.S. soybean supplies are very large and, for now, the South American crop has no major issues. Consequently the temptation to take profits on any rallies will be difficult to resist,” said Tobin Gorey, director, agricultural strategy, Commonwealth Bank of Australia.

U.S. soybean exports surged to a record 1.936 billion bushels during the 2015/16 marketing year that ended on Aug. 31, as harvests in competitors Brazil and Argentina were hit by weather problems, forcing importers to buy more U.S. supplies than planned.

The most active corn futures fell 0.5 percent to $3.53-1/4 a bushel, having closed down 0.7 percent in the previous session.

“Although an acceleration of the harvest is pressuring prices operators are waiting for the USDA report on Nov. 9 which could lower U.S. (corn) yields again,” French consultancy Agritel said in a note.

The most active wheat futures rose 0.2 percent to $4.09-1/2 a bushel but gains were capped by hefty supplies. The contract closed down 1.5 percent on Friday.