* Forecasts of rains in parts of Brazil, Argentina
* China's 2021 soybean imports slip 3.8% vs 2020
* U.S. Dec. soybean crush seen at 184.996 mln bushels
SINGAPORE, Jan 14 (Reuters) - Chicago soybean and corn
futures lost more ground on Friday, with both markets set to end
the week lower on forecasts of rains in drought-hit South
American growing regions.
Wheat is on track for a third week of decline on improved
"We were looking at a bigger drop in South American soybean
production but with recent weather outlook it might not be as
bad as expected earlier," said Ole Houe, director of advisory
services at agriculture brokerage IKON Commodities in Sydney.
The most-active soybean contract on the Chicago Board of
Trade (CBOT) fell 0.9% to $13.65 a bushel, as of 0509 GMT,
taking the weekly decline to more than 3%.
Corn has lost 3.4% this week and wheat is down
more than 2%.
Weather forecasts show parched areas of Argentina, the
world's top exporter of processed soy and No. 2 producer of
corn, may receive significant rainfall from late this week,
The U.S. Department of Agriculture (USDA), in a crop report
on Wednesday, reduced its soybean and corn production forecasts
in Brazil and Argentina. Some private analysts have cut their
outlooks more steeply.
Brazil is poised to reap just above 134 million tonnes of
soybeans this season, 7% below the previous November forecast by
agribusiness consultancy Agroconsult, as a drought may cause the
country's average yields to reach a six-year low.
According to a presentation on Thursday, the projection also
represents a 2% drop from the 137.1 million tonnes produced in
On the technical front, the CBOT soybeans March contract
may test a support at $13.56-1/4 per bushel, a break below
which could cause a fall into $13.38-1/2 to $13.46-1/2 range,
according to Wang Tao, a Reuters analyst for commodities
The focus is also turning to demand.
China's soybean imports in 2021 fell from the previous year,
the first annual drop since 2018, customs data showed, on
weakening demand from its massive livestock sector.
China, the world's top buyer of soybeans, brought in 96.52
million tonnes of the oilseed in the 12 months of 2021, down
3.8% from 100.33 million tonnes in 2020, data from the General
Administration of Customs showed, as falling hog margins and
increased wheat feeding curbed demand.
For the wheat market, the International Grains Council on
Thursday raised its forecast for 2021/22 global production,
partly driven by an improved outlook for the crop in Australia.
In its monthly update, the inter-governmental body increased
its 2021/22 world wheat crop outlook by 4 million tonnes to 781
The USDA also pegged U.S. winter wheat acreage, U.S.
end-of-season stocks and world wheat stocks above average
U.S. soybean processors likely crushed a near-record volume
of soybeans in December amid ample crushing supplies and good
processing margins, according to analysts polled ahead of a
monthly National Oilseed Processors Association (NOPA) report
due on Tuesday.
Commodity funds were net sellers of CBOT wheat, corn,
soybean, soymeal and soyoil futures contracts on Thursday,
(Reporting by Naveen Thukral; Editing by Rashmi Aich and