* Soybeans bounce away from Tuesday’s contract low
* Corn around 2-wk low on hopes of record U.S. production (Adds continued soybean strength in European trade, comment)
By Michael Hogan and Naveen Thukral
HAMBURG/SINGAPORE, Aug 27 (Reuters) – Chicago soybeans rose on Wednesday, lifted by expectations of an increase in demand after prices slid to a contract low in the previous session due to prospects for a bumper U.S. soybean harvest.
Corn fell to levels near Tuesday’s two-week low as the expected record-large U.S. crop thrives in favourable weather. Wheat was flat after seeing a rebound from recent lows earlier on Wednesday.
Chicago Board of Trade November soybeans were up 0.3 percent at $10.32 a bushel by 1041 GMT after dropping to a contract low of $10.19-3/4 a bushel on Tuesday. Corn fell 0.4 percent to $3.63-1/2 a bushel, not far from last session’s two-week low of $3.61-3/4 a bushel.
December wheat was unchanged at $5.56-1/2 a bushel.
“Soybeans are being supported today by hopes that the low price levels we are now seeing will generate new demand from consumers,” said Frank Rijkers, agrifood economist at ABN AMRO Bank. “A large soybean harvest is expected in the United States, and we could see a transfer of demand to soy from other feed grains.”
The U.S. Department of Agriculture (USDA) on Monday said 70 percent of U.S. soybeans crops were rated good to excellent, down 1 percentage point from a week ago but still the best for late August in 22 years.
“Soybean crush margins have certainly improved with prices coming off,” said Brett Cooper, senior manager of markets at FCStone Australia.
The USDA on Monday also lifted its U.S. corn crop rating as rains helped plants in major producing states such as Illinois and Nebraska.
It reported that 73 percent of the U.S. corn crop was rated good to excellent as of Aug. 24, the best late-August rating since 1994.
Wheat prices have also been weak in August on expectations of ample global supplies.
“Wheat is seeing a limited correction from its recent lows, with some expectation that extra demand could be created by the current overall price levels,” Rijkers said. “But overall the good global supply outlook will continue to burden wheat.”
U.S. wheat is seen as uncompetitive in the global market even after losing more than a quarter of its value since hitting this year’s high in early May.
Egypt’s state grain buyer on Tuesday bought 175,000 tonnes of Russian and Romanian wheat for shipment on Sept. 21-30, its vice-chairman and traders said. Grains prices at 1041 GMT Contract
Change Pct chg Two-day chg MA 30 RSI CBOT wheat
551.12DSPDCM CBOT corn
370.58 36 CBOT soy
1065.71 27 CBOT rice
$12.98 45 WTI crude
$98.37 37 Currencies
$1.318 $0.001 +0.11%
-0.08% (Reporting by Michael Hogan and Naveen Thukral; editing by Jane Baird)