Prices for US soybeans and grains dipped on Monday, giving up slight earlier advances, in thin, choppy trade that focused on plentiful global supplies. The markets declined despite favourable weakness in the US dollar and concerns about insufficient rains curbing Brazil's soybean production.
Price movements and volumes were limited as the market wound down before the Christmas holiday on Friday. "You have to factor in that we are in holiday timing and a lot of (traders) are not around. That tends to give you an erratic, choppy type of trade," said Terry Linn, broker at The Linn Group in Chicago.
Oversupply and doubts about demand weighed on grain markets, he said. Chicago Board of Trade January soybeans shed 4-1/2 cents or 0.5 percent to $8.87-3/4 a bushel by 10:58 am CST (1658 GMT). The contract earlier hit its highest since December 7 at $8.96-1/4 a bushel. March corn lost 4-1/4 cents or 1.1 percent to $3.70-1/4 a bushel, while Chicago March wheat gave up 7-1/2 cents or 1.5 percent to $4.79-1/4 a bushel. Brazil's 2015/16 soybean crop forecast was lowered to 97.9 million tonnes, from 101.1 million previously, because of irregular rainfall in the center-west and smaller northern and north-eastern grain belts, local analyst Franca Junior said on Friday. Weekend rain was patchy in the centre-west region and, despite more showers in the next couple of days, about 20 percent of Brazilian soybeans could still be facing stress, the Commodity Weather Group said in a note.