SINGAPORE: Chicago wheat futures fell for a second session on Wednesday, under pressure from a bigger-than-expected supply forecast by the US Department of Agriculture and a lack of demand.
Soybeans were largely unchanged after dropping almost 1 percent in the previous session, while corn futures continued to struggle in the face of ample world supplies.
Chicago Board Of Trade March wheat fell 0.4 percent to $5.19-3/4 a bushel by 0223 GMT, having closed down 1.5 percent on Tuesday.
March soybeans rose quarter of a cent to $9.69-1/4 a bushel, having closed down 1 percent on Tuesday and corn gave up 0.25 cents to $3.87-3/4 a bushel, having slid 0.8 percent in the previous session.
"Chicago wheat is way too expensive relative to everything else. It is not competing for any export market share," said one Melbourne-based analyst.
"It is pretty hard for the soybean market to rally as we had plentiful supplies from the US last year and now record production is coming from South America."
The USDA in its monthly supply-demand report pegged global wheat ending stocks at 197.85 million tonnes, up from the average analyst estimate of 195.83 million and the largest supply since 2009/10 marketing season.
Fierce competition on the export market culled overseas demand for US wheat, which is seen as expensive. The USDA cut its US wheat export projection by 2.7 percent to 900 million bushels.
The USDA's estimate of US domestic ending stocks for corn and soybeans were smaller than average estimates but within the range of expectations.
Global corn production increased by 5 million tonnes due to larger harvest outlooks for Ukraine and Argentina, both of which have taken away export market share from the United States in recent years.
US soybean supplies were tighter than expected due to rising demand on both the domestic and export fronts, it said.
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