GRAINS-Soybeans and corn slip closer to 3-year lows on plentiful supply

Credit: REUTERS/RODOLFO BUHRER

CANBERRA, Feb 13 (Reuters) - Chicago soybean and corn futures fell on Tuesday and were near three-year lows as forecast rainfall in South America bolstered expectations of ample supply.

Wheat also edged lower, with a declining Russian grain price maintaining pressure on the market.

FUNDAMENTALS

* The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was down 0.3% at $11.90 a bushel by 0112 GMT, close to last week's low of $11.79.

* CBOT corn Cv1 fell 0.2% to $4.29-1/2 a bushel, a whisker from lows of $4.28 reached on Monday and last Friday.

* Wheat Wv1 dipped 0.1% to $5.96-3/4 a bushel, some distance above last September's three-year low of $5.40.

* Soybeans are under pressure after the U.S. Department of Agriculture (USDA) cut its Brazilian soy harvest forecast less than expected and raised its global supply projection to the highest on record.

* Meanwhile, soybeans from top producer Brazil are "trading at a sharp discount to the U.S. market as abundant supplies flow to export terminals", said StoneX analyst Arlan Suderman.

* Argentina is also expected to see a bumper harvest, with widespread rains over the weekend boosting confidence in that forecast.

* Demand in top importer China is also weakening as a shrinking pig herd reduces demand for animal feed.

* Speculators hold large net short positions in Chicago soybeans and corn but were net buyers of both on Monday, traders said.

* In corn, consultants AgRural raised their forecast for Brazil's 2023/24 second crop to 91.2 million metric tons from 86.3 million tons.

* Wheat export prices in top exporter Russia fell again last week, the IKAR agriculture consultancy reported.

* Ukraine urged Warsaw to "hold to account" Polish farmers for stopping three trucks at a border crossing between Poland and Ukraine and spilling the grain they were carrying.

MARKETS NEWS

Global stock indexes were little changed on Monday while the U.S. dollar inched higher ahead of Tuesday's U.S. consumer price index report, which could provide clues on when the Federal Reserve is likely to begin cutting interest rates. MKTS/GLOB

(Reporting by Peter Hobson; Editing by Rashmi Aich)

((peter.hobson@thomsonreuters.com;))

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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