Soybeans rebound on bargain buying, US harvest limits upside

SINGAPORE, Oct 28 (Reuters) - Chicago soybean futures rose for the first time in three sessions on Wednesday, supported by bargain buying and an estimate of lower output in Brazil, although gains were capped by pressure from the ongoing US harvest.

Wheat and corn prices edged higher in early Asian trade.

FUNDAMENTALS

* The most-active soybean contract on the Chicago Board of Trade (CBOT) rose 0.2% to $12.45 a bushel by 0015 GMT, having dropped to its lowest in three-and-a-half months on Tuesday.

* Corn added 0.4% to $4.50-1/2 a bushel and wheat gained 0.3% to $6.12 a bushel.

* Ample US harvest supplies weighed on CBOT soybean prices, while prospects of lower output in Brazil offered some support.

* Brazil's 2026/27 soybean crop could fall to 163.6 million metric tons under a strong El Niño scenario, compared with 181.2 million tons under neutral weather conditions, a study by Serasa Experian projected on Tuesday.

* Corn also faced pressure from the advancing US harvest, which could further bolster large stocks and increase world export supplies.

* The US soybean harvest was 79% complete as of Sunday, in line with trade expectations, and the corn harvest was 60% finished, the US Department of Agriculture said in a weekly progress report on Monday, ahead of the average estimate in a Reuters poll of 10 analysts.

* Traders said they remained worried that a weaker Brazilian currency would weigh on US export demand for grains and soybeans.

* On Monday, the Brazilian real slumped against the US dollar after President Luiz Inacio Lula da Silva's reelection — undoing bullish investor sentiment after his right-wing rival led the first round of voting earlier in the month.

MARKET NEWS

* MSCI's global equities gauge rose on Tuesday as investors awaited earnings from US technology companies and the Federal Reserve's next policy decision. MKTS/GLOB

DATA/EVENTS (GMT)

1100 France Unemp Class-A SA Sep