(Reuters) – Chicago soybean futures fell for a second session on Monday with forecasts of crop-friendly rains in the U.S. Midwest adding pressure on the market after it was hit by deep losses last week on the outlook for bumper U.S. output.
Corn edged higher as the market awaited a weekly crop progress report from the U.S. Department of Agriculture later in the day, while wheat edged lower after gaining for the past two sessions on concerns over dryness in Canada.
Chicago Board Of Trade November soybeans fell 0.5 percent to $9.12 a bushel by 0408 GMT, having closed down 1.1 percent on Friday. Soybeans hit a two-month low of $9.01-1/2 a bushel last week.
December corn gained 0.3 percent to $3.76-1/2 a bushel, having closed little changed in the previous session.
September wheat fell 0.2 percent to $5.05-3/4 a bushel, having closed up 0.6 percent on Friday.
“China’s currency devaluation and the USDA’s improved U.S. crop yield forecast have negatively impacted prices,” ANZ said in a research note.
“The market is closely watching the upcoming weekly U.S. crop report after last week’s disparity, which was observed between the strong soybean yields forecast in the USDA’s report and weaker crop ratings.”
Showers expected in the U.S. Midwest in the next 10 days should bring welcome moisture to corn and soybean crops following a relatively dry spell, an agricultural meteorologist said on Friday.
The soybean complex remains under pressure from the USDA’s forecast for larger than expected supplies and concerns over future Chinese demand.
The USDA forecast the 2015-16 soybean harvest at 3.916 billion bushels based on an average yield of 46.9 bushels per acre, above market expectations.
The supply shock coincided with jitters about demand from China after the world’s biggest soybean buyer unexpectedly devalued its currency.
Canada is expected to produce 13 percent less wheat this year after hot, dry weather, according to a Reuters trade survey on Friday.
Large speculators cut their net long position in CBOT corn futures in the week to Aug. 11, regulatory data released on Friday showed.
The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and raised their net long position in soybeans.
