US soyabean futures headed lower on Tuesday for a third straight session, reversing from early strength to touch a two-week low on expectations for large South American soya harvests, analysts said. Wheat futures were also lower while corn firmed, supported by export demand and technical buying. As of 12:08 pm CST (1808 GMT), Chicago Board of Trade March soyabean futures were down 3-3/4 cents at $10.28-3/4 per bushel after dipping to $10.26-1/2, the contract's lowest since February 6.
Early support in soyabeans stemmed from fears that heavy weekend rains in Argentina could threaten yield prospects, but local weather analysts said the moisture was probably beneficial for crops. Favourable weather in Brazil, which is forecast to harvest a record-large soyabean crop, added to bearish sentiment.
Wheat was also on track for a third straight decline, with the March contract down 2-1/4 cents at $4.38-3/4 a bushel.
A stronger dollar added pressure, making US wheat less attractive on the global market. The dollar gained on market expectations that the Federal Reserve might raise benchmark US interest rates in March.
However, weekly export data from the US Department of Agriculture was supportive. The government reported export inspections of US wheat in the latest week at 558,252 tonnes, topping a range of trade expectations for 350,000 to 550,000 tonnes.
Corn turned higher after a choppy start, supported by technical buying and fresh export demand. CBOT March corn was up 2 cents at $3.70-1/4 a bushel.
The USDA said private exporters in the last day sold 269,296 tonnes of US corn to Japan and another 111,200 tonnes of US corn to unknown destinations.