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Soybeans drop to nine-month low on slow demand

June 14, 2018 00:00:00

SINGAPORE, June 13 (Reuters): Chicago soybeans slid more than 1 per cent to its lowest since mid-September on Wednesday, weighed down crop-friendly weather and a lack of Chinese demand for US supplies.

Wheat gave up 1 per cent after Tuesday's strong rally which was triggered by the US government's estimates of lower Russian production.

The Chicago Board of Trade most-active soybean contract was down 1.2 per cent at $9.43 a bushel by 0325 GMT, having dropped earlier in the session to the lowest since Sept. 12 at $9.42-1/2 a bushel.

Wheat fell 1.03 per cent to $5.29 a bushel, after rallying almost 4 per cent on Tuesday, and corn dropped 0.5 per cent to $3.75-3/4 a bushel, after gaining 2.8 per cent in the previous session.

"US weather is looking good for the soybean crop and we have had a record crop from Brazil," said one India-based commodities analyst.

"Chinese buying is largely focused on Brazilian beans."

The USDA raised its estimate of all US wheat production for 2018/19 by 6 million bushels to 1.827 billion bushels, but it cut its Russia wheat harvest estimate to 68.50 million tonnes from 72.00 million tonnes.

Australia on Wednesday cut its wheat production forecast by nearly 8.0 per cent for 2018/19 as prolonged dry weather across the country's east coast crimps national output.

The USDA lowered its forecasts for US corn and soy ending stocks for the 2018/19 crop year that begins on Sept. 1.

Late on Monday it reduced good-to-excellent crop condition ratings for the corn and soy crops by 1 per centage point, but the ratings are still some of the best in years, while weekend rainfall in the Midwest also benefited crops.

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