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Soybeans ease after rally, U.S. weather concerns limit losses

Chicago soybean futures edged down on Tuesday, giving up some of the previous session’s gains although worries about wet weather ahead of U.S. harvest curbed losses.

Corn lost ground after closing higher on Monday, while wheat slid for a fourth consecutive session amid ample world supplies.

The most-active soybean contract on the Chicago Board Of Trade was down 0.1% at $8.91-1/4 a bushel by 0307 GMT,
after firming 1.1% on Monday.

Corn lost 0.3% to $3.72 a bushel and wheat slid 0.3% at $4.81-1/2 a bushel.

“The U.S. weather is starting to be a concern,” said Ole Houe, director of advisory services at brokerage IKON Commodities in Sydney. “The wet weather could continue.”

There was additional support for the soybean market stemming from new Chinese purchases.

Chinese importers bought about 10 cargoes of U.S. soybeans on Monday, or about 600,000 tonnes, for shipment from Pacific Northwest export terminals from October to December, two traders with direct knowledge of the deals said.

Over the weekend, China’s senior agricultural representative in recent U.S.-China trade talks told state-backed media group Yicai that last week’s meetings between the world’s two largest economies achieved a “good outcome.”

Commodity funds were net buyers of CBOT soybean, corn and soymeal futures contracts on Monday, traders said. They were net sellers of wheat and soyoil futures.

On the technical front, the CBOT soybean November contract may retest a resistance at $9.01-1/2 per bushel, as
suggested by its wave pattern and a projection analysis, according to Wang Tao, a Reuters market analyst for commodities technicals.

Grains prices at 0307 GMT
 Contract    Last    Change   Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  481.50  -1.50    -0.31%   -1.33%       475.78  51
 CBOT corn   372.00  -1.25    -0.33%   -0.20%       368.81  67
 CBOT soy    891.25  -1.25    -0.14%   -0.20%       875.43  60
 CBOT rice   12.03   -$0.03   -0.25%   -2.71%       $11.84  50
 WTI crude   58.42   -$0.22   -0.38%   +0.57%       $56.44  
 Euro/dlr    $1.099  -$0.003  -0.25%   -0.45%               
 USD/AUD     0.6769  0.000    +0.01%   -0.29%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 RSI 14, exponential

Source: Reuters (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)

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