GRAINS-Chicago soybeans fall on forecasts of welcome rain in Brazil

Credit: REUTERS/KARL PLUME

By Michael Hogan

HAMBURG, Dec 4 (Reuters) - Chicago soybean prices fell on Monday following forecasts for crop-friendly rain this week in drought-stricken Brazil, the biggest global supplier.

Falling soybeans helped to drag down corn prices while wheat rose on export hopes after Russian prices rose.

The most-active soybean contract Sv1 on the Chicago Board of Trade fell 0.7% to $13.15-3/4 a bushel at 1218 GMT. Wheat Wv1 rose 0.6% to $6.06-1/2 a bushel, corn Cv1 fell 0.3% to $4.83 a bushel.

Analysts have been cutting Brazilian soybean harvest forecasts as the world's biggest soybean exporting nation faces a drought, but forecasts of rain helped ease concern about crop losses.

"Soybeans are being weakened by the forecasts of welcome rain in Brazil this week and the market focus is now returning to the belief that we could see a record soybean crop in South America," said Matt Ammermann, StoneX commodity risk manager.

He added that crops in other South American regions including Argentina were looking satisfactory so even if there was a harvest reduction in Brazil, supplies were likely to be large.

"Corn is seeing some spillover weakness from soybeans while wheat is supported by hopes of more export sales," Ammerman said.

Algeria's state grains agency OAIC issued an international tender to purchase a nominal 50,000 metric tons of durum wheat, European traders said on Sunday.

"With Russian wheat prices rising and winter causing logistical snares in the Black Sea, there is hope the U.S. and EU could make more wheat export sales," Ammermann said. “There is also hope more buying demand could be generated if importers believe wheat prices will continue to rise.”

(Reporting by Michael Hogan in Hamburg, additional reporting by Mei Mei Chu in Beiijng; Editing by Sherry Jacob-Phillips, Rashmi Aich and Emelia Sithole-Matarise)

((michael.j.hogan@thomsonreuters.com; +49 172 671 36 54; Reuters Messaging: michael.hogan.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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