US soyabean futures fell to a six-day low on Tuesday, pressured by the rapidly advancing harvest of a record crop in Brazil and much-needed rains in Argentina. Corn and wheat futures also weakened, setting back from 7-1/2 month lows in the absence of bullish news that would drive prices higher. Declines in corn and wheat were kept in check by speculators defending long positions they have built up during the recent rally.
Soyabeans were on the defensive amid expectations of a bumper harvest in both Brazil and Argentina that will boost competition for US supplies on the export market. "Northern Brazil rains begin to diminish after mid-week," Commodity Weather group said in a note. "Fairly quiet Brazil pattern (for the) rest of 10-day (outlook) to aid corn/soya fieldwork."
The forecasting group added that rain in Argentina would maintain the potential for high corn and soyabean yields in that country. At 10:30 am CST (1625 GMT), Chicago Board of Trade March soyabean futures were down 8-1/2 cents at $10.45-3/4 a bushel.
Dealers said that selling by US soyabean farmers has also helped to stall a run-up in prices this month. US farmers have made advance sales of up to half the soyabeans they expect to harvest this year, looking to get ahead of the expected record South American crop.
CBOT March soft red winter wheat futures were down 2-1/4 cents at $4.50 a bushel. Wheat rose during the five previous sessions, gaining 7.0 percent during the streak. CBOT March corn was 1-1/2 cents lower at $3.74 a bushel. Signs of good export demand kept the declines in check. The US Agriculture Department on Tuesday morning said private exporters reported the sale of 229,000 tonnes of corn for delivery to Japan in the 2017/18 marketing year. It was the second day in a row that the government has announced a flash corn sale.