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GRAINS-Soybeans ease from 28-month high, Chinese demand curbs losses

* Soybeans dip after 3 sessions of gains

* Wheat near its highest since March on dry weather concerns (Adds quote in paragraph 4, details on fund positions)

SINGAPORE, Sept 21 (Reuters) – Chicago soybean futures snapped a three-session streak of gains on Monday, easing from a 28-month high hit in the previous session, although strong demand from the world’s top buyer China limited losses.

Wheat traded near a six-month peak touched in the last session as dry weather in key exporting countries supported prices.

The most-active soybean contract on the Chicago Board Of Trade slid 0.1% to $10.42 a bushel by 0258 GMT, after ending 1.5% firmer on Friday. Soybeans hit a two-year high of $10.46-3/4 a bushel last week.

“The soybean rally is perhaps entering its late phase,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. “The investor long is likely to be close to historical highs, suggesting waning buying appetite going forward.”

Corn fell 0.4% to $3.77 a bushel, after gaining 0.9% in the previous session. Wheat was unmoved at $5.75 a bushel after rising 3.4% on Friday.

The U.S. Department of Agriculture confirmed U.S. soybean sales to China in each of the last 11 business days, including Friday’s announcement of 132,000 tonnes. The USDA also reported sales of 210,000 tonnes of U.S. corn to China and 100,000 tonnes of soymeal to unknown destinations.

Wheat is being supported by concerns over global supplies. There have been worries about dryness in Argentina, Europe and the Black Sea region.

The number of wheat fields in northern Argentina that will not be harvested due to drought is growing as wider areas are being affected by lack of moisture, the Buenos Aires Grains Exchange said in its weekly crop report on Thursday.

Large speculators switched to a net long position in CBOT corn futures in the week to Sept. 15, regulatory data released on Friday showed.

The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and raised their net long position in soybeans.
Source: Reuters (Reporting by Naveen Thukral; Editing by Devika Syamnath)

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