Investing.com - Investing.com - U.S. grain futures were broadly lower during European morning hours on Tuesday, with soybean prices coming off the highest level in five weeks as traders eyed weather conditions in Brazil, the world's second largest soy grower.
On the Chicago Mercantile Exchange, soybeans futures for January delivery traded at USD14.7425 a bushel, tumbling 1.45% on the day.
The front-month contract fell by as much as 1.65% earlier in the day to trade at a session low of USD14.7288 a bushel, the weakest level since December 13.
Soybean prices came under pressure after Brazil-based weather service provider Somar Meteorologia said earlier that it expected rainfall later this week across most parts of the country's center west, southeast and southern regions.
The rainy conditions were likely to maintain good soil moisture levels, potentially boosting yields and upgrading the quality of the harvest.
Brazil is a major soybean exporter and competes with the U.S. for business on the global market. An upbeat crop outlook in the South American country could weigh on demand for U.S. supplies.
Prices rallied to USD15.0862 a bushel on Monday, the strongest level since November 8 after the U.S. National Oilseed Processors Association said the November U.S. soybean crush totaled 157.3 million bushels, the largest monthly figure in nearly three years.
Elsewhere, corn futures for March delivery traded at USD7.1812 a bushel, down 0.8% on the day. The March contract fell by as much as 0.95% earlier to trade at a daily low of USD7.1700 a bushel, just above last week's four-week low.
The March CBOT contract fell to a four-week low of USD7.1537 a bushel on December 13 after the USDA left its forecast for U.S. corn ending stocks unchanged at 647 million bushels.
Meanwhile, wheat for March delivery traded at USD8.0388 a bushel, losing 0.5% on the day. The March contract fell by as much as 0.65% earlier in the session to hit a daily low of USD8.0312 a bushel.
Wheat prices touched a five-month low of USD8.0162 a bushel on December 13, as market players sold the grain in response to last week's bearish USDA Supply and Demand report.
The USDA raised its estimate on U.S. wheat ending stocks to 754 million bushels earlier in the week, up 6.6% from its November projection of 704 million bushels. The upward revision reflected slow pace of U.S. export sales.
The agency also increased its forecast for global wheat ending stockpiles to 176.95 million tonnes, up from the November's estimate of 174.18 million tonnes and above market expectations of 175.68 million.
The USDA upgraded its view on wheat crops in Canada, Australia and China, easing concerns over a disruption to global supplies.
Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.
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