Soybeans down on big US crop, corn bounces amid renewed demand

By Reuters News

By Karl Plume

CHICAGO, Oct 12 (Reuters) - US soybean futures fell on Monday on ample supplies after the US Department of Agriculture late last week projected a larger-than-expected US crop and as mostly dry weather allowed for active harvesting around the Midwest.

Corn ticked higher in a technical and short-covering rebound from steep losses on Friday and renewed demand after prices hit two-month lows, while wheat futures were narrowly mixed.

Grain markets continued to recover from their sharp reaction to the USDA's US corn and soybean production forecasts in a monthly report. The agency raised its soy crop view by more than expected and shocked traders by raising its corn harvest outlook despite adverse crop weather this summer.

"The moves on Friday were overdone a little bit in both directions, so there's a bit of a knee jerk in the opposite direction," said Jim Gerlach, president of A/C Trading.

The USDA's corn yield forecast "doesn't pass the sniff test for a lot of people," Gerlach said. "And the bean crop is probably every bit of the record that USDA is saying."

Chicago Board of Trade November soybeans were down 6 cents at $12.86 a bushel at 12:15 p.m. CDT (1715 GMT) after touching a six-week low on Friday before closing higher. December corn was up 2 cents at $4.81-3/4 a bushel following Friday's 4% plunge.

Farmers are actively harvesting both crops this week under mostly dry Midwest skies. Analysts expect the USDA to estimate strong harvesting progress on Tuesday as its weekly crop progress report was delayed by a day due to a federal holiday on Monday.

Corn drew support from a flurry of new import tenders by South Korea and Taiwan after Friday's price drop. {GRA/TEND]

Wheat futures took a breath after three sessions of losses as traders monitored news about Black Sea shipping delays due to the Russia-Ukraine war.

CBOT December wheat was up 1/2 cent at $6.71-1/2 a bushel.

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