Ample supply outlook halts rally in soybeans, corn
CANBERRA, July 24 (Reuters) -Chicago soybean futures edged lower on Wednesday, as a rally fuelled by fears that hot, dry weather in parts of the United States could shrink the crop ran out of steam and investors refocused on an outlook for plentiful supplies.
Wheat futures also fell, with supply from ongoing harvests in the United States and Russia flooding the market and pressuring prices.
FUNDAMENTALS
* The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was down 0.2% at $10.73-3/4 a bushel, as of 0049 GMT, after rising nearly 4% on Monday and Tuesday.
* CBOT corn Cv1 slipped 0.2% to $4.16-1/2 a bushel, having risen about 3% in the previous two sessions, while wheat Wv1 fell 0.4% to $5.40-1/2 a bushel.
* Speculators anticipating ample supplies have amassed large net short positions in all three contracts. Some of the gains of recent days have been fuelled by their short-covering, traders say.
* Joe Biden's decision to drop out of the U.S. presidential race also lifted soybean and corn prices by reducing the chances of a Donald Trump victory and a renewed U.S.-China trade war, analysts said.
* Hot, dry Midwest weather over the next two weeks is expected to lower crop ratings, StoneX analyst Arlan Suderman wrote in a note.
* U.S. Department of Agriculture data on Monday showed that 68% of the U.S. soybean crop and 67% of the U.S. corn crop was in good-to-excellent condition, the highest ratings for this time of the year since 2020.
* Suderman also said U.S. soybeans had a window of opportunity for shipment to China over the next couple of months as Brazil focuses on moving its recently harvested corn crop. Brazil and the United States are the biggest soy exporters.
* Brazilian exporter association Anec on Tuesday reduced its forecast for the country's July soybean exports to 10.43 million tons from 10.71 million but said soymeal exports could reach 2.40 million tons, a record high.
* In wheat, agricultural consultancy Sovecon raised its forecast for Russia's 2024 grain crop to 130.5 million tons from 127.4 million tons, lifting its wheat estimate by around 100,000 tons to 84.2 million tons. Russia is the world's biggest shipper of wheat.
* Scouts on the first day of an annual U.S. crop tour on Tuesday projected spring wheat in southern and east-central North Dakota will produce the highest yields in tour records dating to 1994.
MARKETS NEWS
* Global stocks edged lower and U.S. bond yields dropped on Tuesday as markets awaited economic data and a plethora of corporate earnings, moving past U.S. President Joe Biden's decision to end his reelection bid. MKTS/GLOB
Reporting by Peter Hobson; Editing by Subhranshu Sahu
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