Chicago soybeans fall on estimates of larger US crop, corn up on buying after drop

By Reuters News

HAMBURG, Oct 12 (Reuters) - Chicago soybeans fell on Monday as dealers assess the impact of a larger-than-expected US crop forecast from the US Department of Agriculture, along with weaker soymeal.

Chicago Board of Trade's most-active soybeans fell 0.3% to $12.88 a bushel at 1215 GMT. Wheat rose 0.1% to $6.71-3/4 a bushel, while corn advanced 0.3% to $4.81-1/2.

Soybeans are still weakened by Friday's harvest forecast exceeding expectation, said Matt Ammermann, commodity risk manager at StoneX, adding that weaker soymeal was also pressuring soybeans.

"Soymeal, in turn, is being undermined by positive US harvest weather which raises prospects of good soybean supplies for crushers if decent US harvest progress continues."

China resumed work after its recent holiday period but there was disappointment at a lack of Chinese buying of US soybeans, Ammermann said.

Corn was supported by buying interest after Friday's sharp falls, following USDA's surprisingly large harvest forecast, with a series of new corn import tenders also issued on Monday by Asian buyers. GRA/TEND

"For those who need corn supplies, it is a good time to buy," Ammermann said. "But the overall picture with corn remains bearish with larger supplies expected if the USDA's forecast of the second-highest US harvest on record is confirmed."

Wheat rose amid fading hopes of progress towards a Black Sea peace deal that would allow Russia and Ukraine to resume ship-borne exports. US President Donald Trump announced a Ukrainian-Russian energy ceasefire, but Ukraine's leader said he was still awaiting details while Russia did not comment.

"President Trump's announcement that Ukraine and Russia had agreed to an energy ceasefire would be positive for peace prospects, but the restrained reaction from Ukraine and Russia means the market reaction is rather modest," Ammermann said.

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