Soybeans extend drop

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    SINGAPORE- Chicago soybean futures slid for a second session, with prices weighed down by expectations of a record production in Brazil and concerns over Chinese demand hit by African swine fever.

    Sentiment was also dented following Iran’s missile attack on US-led forces in Iraq, which sparked fears of a wider conflict in the Middle East.

    The most-active soybean contract on the Chicago Board Of Trade was down 0.3 percent at $9.41-1/4 a bushel, having closed 0.1 percent weaker on Tuesday.

    Corn fell 0.5 percent to $3.82-3/4 and wheat slid 0.5 percent to $5.47-3/4 a bushel.

    “We have no issues with global supplies,” said a Singapore-based trader. “The situation in the Middle East is bullish for oil and gold, but for most other commodities it is bearish.”

    Traders are monitoring corn and soybean crop weather in Brazil and Argentina as farmers in top soy exporter Brazil get set to begin harvesting a massive crop in the coming weeks.

    Crop conditions are favorable in much of Brazil and Argentina while the key Brazilian soybean state of Rio Grande do Sul, which has been dry, is forecast to receive rain later this week, according to Kyle Tapley, meteorologist with Maxar.

    Iran said it launched a missile attack on US-led forces in Iraq in the early hours of Wednesday in retaliation for the US drone strike on an Iranian commander.

    The US Department of Agriculture (USDA) on Friday will issue a latest report that is expected to show smaller US corn and soy crops, lower US winter wheat seedings and tighter end-of-season grain stocks.

    Grain markets were also awaiting further details on a Phase 1 US-China trade deal that is expected to significantly bolster Chinese purchases of US agricultural goods.

    On the technical front, CBOT March soybean may retest a resistance at $9.46 per bushel. A break could lead to a gain into a range of $9.51 to $9.59-1/2, according to Wang Tao, a Reuters analyst for commodities technicals.

    Commodity funds were net sellers of CBOT corn, soybean and soymeal futures contracts on Tuesday, net buyers of soyoil and net even in wheat, traders said. – Reuters