SINGAPORE: Chicago soybeans lost more ground on Thursday, while corn prices traded close to a three-year low hit in the previous session, as improved weather in Argentina and Brazil boosted expectations of abundant supplies.

Wheat fell for the first time in three sessions. “There are forecasts of more favourable weather in South America, mainly in Argentina, which have raised hopes of even bigger crops,” said one Sydney-based grains trader.

The most-active soybean contract on the Chicago Board of Trade (CBOT) fell 0.1% to $11.88-1/4 a bushel, as of 0225 GMT, while corn was down 0.1% at $4.33-3/4 a bushel, after dropping to its weakest since December 2020 at $4.33 on Wednesday.

Wheat fell 0.5% to $5.99 a bushel. Argentina’s main farmland will receive significant rainfall over the next few days, the Buenos Aires Grains Exchange said on Wednesday, adding this should boost the country’s current soybean and corn crops.

In recent weeks, Argentina’s top agricultural areas have experienced mostly dry conditions and high temperatures during the Southern Hemisphere summer.

Projected rains in major Brazilian growing regions are adding to expectations of massive South American supplies. Expectations of large grain and oilseed supplies are driving funds and other market participants to adjust their positions ahead of a raft of crop reports later on Thursday.

The reports will include Brazilian agency Conab’s update of the country’s official production estimates, Statistics Canada’s estimates on the country’s grain stocks, and the US Department of Agriculture’s monthly US and world supply and demand forecasts. Commodity funds were net sellers of CBOT corn, soybean and soymeal futures contracts on Wednesday, and net buyers of wheat and soyoil, traders said.