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Soybeans rise off 12-week low on short-covering

By Reuters News

By Tom Polansek

CHICAGO, Nov 6 (Reuters) - Chicago Board of Trade soybean futures edged higher on Friday, supported by short covering and bargain buying, after sliding earlier to a 12-week low.

An influx of freshly harvested soybeans and corn from US farmers' fields has weighed on prices.

Traders adjusted positions ahead of the US Department of Agriculture issuing updated crop forecasts next week. Analysts, on average, expect the agency to increase its estimate of US soybean production to a record-large 4.597 billion bushels from 4.562 billion in October, according to a Reuters poll.

Large crop forecasts have helped fuel long liquidation by commodity funds, traders said.

"The biggest problem you have in the market right now is you still have too many longs in the soybean complex," said Jim Gerlach, president of A/C Trading.

Most-active soybean futures traded as low as $11.84 per bushel, the lowest level since August 14, before rising 3-1/4 cents to $11.91-1/2 in afternoon trading.

CBOT corn traded as low as $4.38-1/2 a bushel, the lowest since July 1, a level corn also touched on Wednesday. Futures then rebounded and were last up 2 cents at $4.42 a bushel.

Analysts, on average, expect the USDA to peg US corn production at 15.962 billion bushels next week, down from its October estimate of 16.034 billion. The harvest would be the second largest in history, after last year's crop.

"Rains have finally moved out of the heart of the country and a strong corn harvest is set to resume across the belt next week," consultancy StoneX said.

CBOT wheat slid on prospects of a resumption of Black Sea grain exports after Russia and Ukraine confirmed participation in three-way peace talks with the US in Abu Dhabi November 10 to 11.

Wheat futures were down 5-3/4 cents at $5.93-1/2 a bushel.

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