(Reuters) – U.S. soybean futures fell on Tuesday, edging away from a near three-month high in the previous session as traders unwound bets ahead of the latest U.S. Department of Agriculture report.
Corn also dipped, giving back some of Monday’s gains, while wheat rose for the first time in three sessions. Chicago Board of Trade January soybeans fell 0.2 percent to $13.41-3/4 a bushel, having closed up 1.4 percent in the previous session when the oilseed hit a high of $13.46-3/4 a bushel, the highest since Sept. 19.
“We are seeing position squaring ahead of the USDA report tonight,” said Andrew Woodhouse, grains analyst at Advance Trading Australasia.
“Soybeans have been driven by demand and I expect that to be shown in the USDA numbers,” he added. The oilseed rallied after the USDA confirmed further sales of 290,000 tonnes of U.S. soybeans to China.
The latest USDA report is expected to trim the agency’s forecasts for U.S. soybean supplies, reflecting brisk export sales.
Soybean sales are tracking at a record pace, with 1.4 billion bushels sold. The demand is expected to drive a fall in the USDA’s ending stocks estimate to 153 million bushels, below its November outlook for 170 million. The figure would still be above the 141 million bushel carryout at the end of the 2012/13 marketing year.
With strong demand, the market is turning its focus to southern hemisphere production as the region moves into its key crop growing season.
Analysts polled by Reuters put Brazil’s soy output at 88.7 million tonnes, versus the USDA’s 88 million, while production in Argentina is seen at 55.3 million tonnes, above the USDA’s estimate of 53.5 million.
March corn fell 0.1 percent to $4.37-1/2 a bushel, having closed up 0.9 percent in the previous session.
Analysts polled by Reuters on average expect the USDA to trim its corn end stocks estimate by 16 million bushels to 1.871 billion.
March wheat rose 0.1 percent to $6.51 a bushel, having closed down 0.1 percent in the previous session.
A cold snap across the U.S. Plains and key growing areas of the soft red winter wheat region has raised some concerns, but much of the crop is considered safe from damage.
