(Reuters) – U.S. soybean futures fell for a second session on Friday on speculation that China may start to cancel some U.S. cargoes, which pushed two-week losses to more than 1 percent.
Corn edged higher, steadying after a fall in the previous session on a proposal to abolish the U.S. ethanol mandate, while wheat rose slightly.
Chicago Board of Trade January soybean futures fell 0.1 percent to $13.22 a bushel, having closed down 1.5 percent on Thursday when prices hit a six-day low of $13.18-1/2 a bushel.
“The bean market is spooked that some of the cancellations of U.S. corn into China could flow into the oilseed market,” said Luke Mathews, commodities strategist at the Commonwealth Bank of Australia. “But at this stage this is all simply speculation.”
Soybeans are down 0.3 percent for the week, having closed down 0.8 percent in the previous week.
China on Wednesday blocked the entry of another U.S. corn cargo, and three more may be turned away, after tests found a strain of unapproved genetically-modified (GMO) corn.
Analysts said the expected bumper South American soybean crop was adding to concerns over potential cancellations of U.S. shipments.
Losses were capped, traders said, by the better-than-expected U.S. export figures.
The U.S. Department of Agriculture, in its weekly export sales report on Thursday, said export sales of soy for the 2013/14 marketing year totaled 1,108,500 tonnes, above estimates for 750,000 to 950,000 tonnes.
March corn rose slightly to $4.34-1/2 a bushel, rebounding from losses of 1.1 percent in the previous session.
Corn came under pressure after a group of 10 U.S. senators introduced a bipartisan bill on Thursday to eliminate the corn ethanol mandate, arguing that the current law pushes up the cost of food and animal feed and damages the environment The ethanol proposal trimmed weekly gains, with the grain poised to finish the week up slightly.
March wheat rose 0.1 percent to $6.34-1/4 a bushel, having closed down 1.1 percent on Thursday.
Wheat is down 2.5 percent for the week, extending two-week losses to more than 5 percent, with forecasts for near record global wheat production weighing.
