US soyabean futures fell to three-week lows on Thursday as improving crop prospects in South America overshadowed renewed Chinese demand for US shipments. Corn futures also fell to the lowest in three weeks on concerns about demand from ethanol producers and as forecasts for rain in dry areas of Brazil's corn region bolstered the country's production outlook. Wheat rebounded after two days of declines as short-covering and technical buying lifted prices from one-week lows.
Chinese importers are planning to make a third round of US soyabean purchases within days, two sources said, after a trade war truce between Washington and Beijing this month triggered China's largest US soya purchases in six months. But the sales totalling more than 3 million tonnes have fallen short of the pace suggested by forecasts for record-large US and global supplies of soyabeans this season. Brazilian farmers have started harvesting some soyabean fields and crop prospects have improved with beneficial rains following early-week concerns about adverse weather.
Chicago Board of Trade January soyabeans were down 5 cents at $8.95 a bushel at 12:23 p.m. CST (1823 GMT), the lowest since Nov. 30. CBOT March corn was down 5-3/4 cents at $3.76 a bushel. Chart-based selling as the contract broke through support levels around its 20-, 50- and 100-day moving averages accelerated the slide. CBOT March wheat rose 3 cents to $5.25-1/2 a bushel following two days of declines that took prices down more than 2 percent. The contract held chart support at its 20- and 50-day moving averages.
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