BEIIJNG: Chicago soybean futures ticked down on Monday as traders monitored the prospects of showers in drought-stricken Brazil, the biggest global supplier, while corn and wheat lost steam after a brief rally last week.

The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.79% at $13.14-1/2 a bushel by 0440 GMT.

“Rains are forecast to hit dry spots in Brazil over the next week, which are going to determine whether or not Brazil production stabilizes or starts to trend lower again,” Doug Bergman, analyst at RCM Alternatives, noted.

The U.S. Department of Agriculture confirmed private sales of 132,000 metric tons of U.S. soybeans to China, and another 198,000 tons to unknown destinations, all for delivery in the 2023/24 marketing year that began Sept. 1.

Soybeans slide on predicted rains in Brazil

Crop watchers have been paring their harvest forecasts for Brazil as the world’s biggest soybean exporting nation faces a drought, but forecast of showers and easing heat helped ease some concerns over tighter yields.

Agribusiness consultancy Stonex on Friday lowered its forecast for Brazil’s 2023/24 soybean crop to 161.9 million tons, compared with previous outlook of 165.03 million tons.

The most active wheat contract was down 0.25% at $6.01-1/4 a bushel and corn slipped 0.67% to $4.82-1/2 a bushel.

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

Ukraine, a major global grain producer, has harvested almost 77 million tons of grain and oilseeds from the new 2023 harvest so far.

French cereal sowings had again made little progress last week while crop ratings extended their fall, farm office FranceAgriMer data showed, in a sign that heavy rainfall since last month has taken a toll on crops.