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CHICAGO, December 2 (Reuters) – US soybean prices fell to a 2-1 / 2 week low on Wednesday as forecasts for much-needed rain in parts of Brazil’s crop areas prompted a long round of liquidation and profit-taking, traders said.
Wheat prices rose, rebounding on bargain buying a day after the benchmark Chicago Board of Trade (CBOT) March contract fell to a two-month low, and corn futures emerged, rallying from initial weakness.
As of 12:48 CST (1848 GMT), January CBOT soybeans were down 7 cents to $ 11.55 a bushel after dropping to $ 11.42-1 / 2, the lowest contract since Nov. 13.
March CBOT wheat was up 10-1 / 4 cents to $ 5.87-1 / 2 per bushel and March corn was up 3-1 / 4 cents to $ 4.24 per bushel.
Soybeans fell as traders focused on forecasts to improve harvest weather in parts of Brazil, the world’s biggest soybean exporter.
“Increased rainfall in most parts of Brazil over the next week will start to reduce stress on corn and soybean crops. Continued rain will be needed to completely end the drought, ”Kyle Tapley, a meteorologist with space technology company Maxar, wrote in a client note.
Commodity funds hold a strong long net position in the future of CBOT soybeans, leaving the market vulnerable to long term liquidation. So far in 2020, the benchmark for soybean futures is up around 21%.
Datagro and StoneX forecasters on Tuesday raised their estimates for Brazil’s 2020/21 soybean harvest to 134.98 million tonnes and 133.9 million tonnes, respectively.
CBOT wheat rose in a bounce from two-month lows reached on Tuesday.
“Wheat led the ags higher as end-user purchases returned to their recent price lull, with corn following along for the same reasons,” Arlan Suderman, chief commodity economist for StoneX, a commercial brokerage, wrote in a client note.
CBOT wheat prices have been easing since hitting multi-year highs in October, drawn by inconsistent demand for US supplies, with Black Sea suppliers continuing to win business. (Reporting by Sybille de La Hamaide in Paris and Naveen Thukral in Singapore; editing by Jan Harvey and Mark Potter)