US soyabeans extended losses early on Tuesday to touch a one-week low on long liquidation and technical selling ahead of a monthly government supply and demand report, more than offsetting strong import demand from China. Corn ticked up, recovering slightly from Monday's slide of more than 2 percent as traders unwound long-soyabean and short-corn spreads and awaited direction from Wednesday's updated forecasts from the US Department of Agriculture.
Wheat fell for the eighth time in 10 sessions, pressured by tepid demand for US supplies and improving crop conditions in the United States and the Black Sea region. Chicago Board of Trade January soyabeans fell 8 cents, or 0.9 percent, to $8.74-1/4 a bushel by 11:31 am CST (1731 GMT), with selling pressure noted as the contract fell below its 50-day moving average around $8.82-1/2.
CBOT March corn rose 1/4 cent to $3.73-1/4 a bushel while March wheat fell 2-3/4 cents, or 0.6 percent, to $4.80 a bushel. Unwinding of spreads involving long soyabean positions and short corn positions weighed down soyabean prices and helped to underpin corn. March soyabeans' premium to March corn hit a 7-1/2-week high of around $5.26-1/2 late last week before narrowing this week.
"The spreads have been favourable to the soyabeans against the feed grains for the most part this month so we're seeing some liquidation today," said Mike Zuzolo, president of Global Commodity Analytics. Soyabean traders shrugged off news of strong imports by China last month as US sales are likely to face increased competition from Argentine supplies as farmers there react to a weak peso versus the greenback by selling dollar-priced soyabeans in the international market.
China imported 7.39 million tonnes of soyabeans in November, up a third from 5.53 million tonnes in October, figures from the General Administration of Customs of China showed. Wheat prices were weighed down by improving crop conditions in major exporter Ukraine after a drought-hit start to the growing season. Grain and oilseed markets are increasingly focused on the USDA's monthly crop data due at 1700 GMT on Wednesday. The agency is expected to cut its soya supply forecast while boosting its corn and wheat supply outlook, a Reuters poll of analysts showed.