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Soybeans extend gains after USDA supply outlook cut, corn futures ease

By Reuters News

By Karl Plume

CHICAGO, Nov 11 (Reuters) - US soybean futures extended gains on Wednesday after the US Department of Agriculture unexpectedly forecast tighter US supplies in a monthly report a day earlier, while corn futures eased as concerns about demand overshadowed support from tighter supplies.

Wheat futures advanced for a second straight session as a drone attack on the Baltic Sea port of Ust-Luga elevated concerns about grain shipments disrupted by the Russia-Ukraine war as peace talks continued in Abu Dhabi on Wednesday.

Grain traders continued to digest Tuesday's USDA supply-and-demand forecasts that showed smaller-than-expected US corn and soybean harvests and tightening supplies, but also highlighted tepid demand for corn.

"Demand's been a big issue for corn," said Craig Turner, commodity risk management consultant at StoneX. "We need that demand for corn to rally. For the soybean market, we have had demand, and yields did not go up nearly as much as we feared."

The market's focus is shifting to weather in South America, where conditions have been generally favorable for planting although El Nino impacts could surface later in the growing season.

Chicago Board of Trade January soybeans were up 5 cents at $12.33 a bushel at 12:15 p.m. CST (1815 GMT), while December corn fell 2-1/4 cents to $4.46-3/4 a bushel.

CBOT December wheat gained 5 cents to $5.97-3/4 a bushel as a drone attack in a port area on the Baltic Sea in Russia's northwest elevated concerns about grain shipments disrupted by the war.

Ust-Luga is among several Baltic Sea ports heavily used for Russian grain exports following the virtual stop to Black Sea shipments in August.

Russian, Ukrainian and US officials began a second day of peace talks in Abu Dhabi on Wednesday, resuming meetings which Kyiv and Washington depicted on Monday as constructive but which produced no early signs of a breakthrough.

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