Soybeans, corn prices decline

HAMBURG, Oct 02 (Reuters): Chicago soybeans and corn fell on Tuesday, with market attention returning to growing expectations of bumper US crops and good progress with US harvests.

Chicago Board of Trade most-active soybeans were down 0.2 per cent at $8.55-1/2 a bushel at 1110 GMT. Corn fell 0.5 per cent to $3.63-3/4 a bushel. Wheat climbed 0.1 percent to $5.10-1/4 a bushel.

Corn and soybeans rose sharply on Monday after the United States, Canada and Mexico reached a trade pact to replace the North American Free Trade Agreement (NAFTA).

"Soybeans and corn are being weakened today by new forecasts that (the) US crop will be large, plus good US harvest progress," said Matt Ammermann, commodity risk manager with INTL FCStone. "Wheat is being underpinned by hopes the US could win more export business."

"Markets rose on Monday on relief that the new US-Mexico-Canada Agreement will mean that US agricultural exports will not be disrupted by an end to the previous NAFTA deal. Today corn and soybean markets are torn between this relief and the return of focus on the prospects of huge harvests in the U.S. and Brazil."

INTL FCStone on Monday raised its estimate of the average U.S. 2018 corn yield to 182.7 bushels per acre (bpa), from 177.7 bpa in August.

The brokerage raised its forecast of the US 2018 soybean yield to 54.0 bpa, up from 53.8 bpa.

Brazil's 2018-19 soybean crop is seen reaching a record 120.4 million tonnes, a Reuters poll found.