(Reuters) – U.S. soybean futures fell for a second session on Monday, extending losses over the two days to 2.5 percent, as fears over global supplies eased in part due to lower expected demand from China.
FUNDAMENTALS
* Chicago Board Of Trade May soybeans fell 0.7 percent to $13.99-1/2 a bushel, having slid 1.7 percent on Friday.
* May corn rose 0.3 percent to $4.80-1/2 a bushel, having gained 0.1 percent in the previous session.
* May wheat fell 0.3 percent to $6.91-1/4 a bushel, having closed down 1.5 percent on Friday.
* Strong U.S. crushing and export demand have tightened domestic soybean supplies of the oilseed and pushed up prices. However, a large harvest in South America and imports from Brazil should help to compensate for shrinking inventories.
* Projections for reduced Chinese demand for soybeans and for soybean imports to the United States from South America have helped to ease supply fears have added to pressure on prices.
* Sinograin Oils Corp, China’s state-owned grain reserve company, said on Friday that it was not expecting a large number of cancellations of soybean cargoes this year. Traders have worried that bird flu outbreaks in China would hurt demand by reducing the number of chickens consuming feed.
* On Thursday, an executive at a leading Chinese soy buyer said the company was in talks to resell five or six cargoes from Brazil, equivalent to about 360,000 tonnes of soybeans, to the U.S. market.
* Private exporters struck deals to sell 340,000 tonnes of U.S. corn to Egypt for delivery during the 2013/14 marketing year, which started on Sept. 1, according to the U.S. Department of Agriculture.
MARKET NEWS
* Major currencies got off to a lackluster start on Monday following a relatively uneventful weekend with the dollar holding onto most of last week’s solid gains.
