CHICAGO, Jan 20 (Reuters) - U.S. soybean futures hit a one-week low on Friday and were headed for their third straight lower close as traders assessed forecasts for welcome rains in drought-hit Argentina, analysts said.
Corn was mixed in choppy trade as strong weekly U.S. export sales offset pressure from the Argentine weather outlooks, while wheat rose on better-than-expected export sales.
As of 1:08 p.m. CST (1308 GMT), Chicago Board of Trade March soybeans were down 9-3/4 cents at $15.05 per bushel after dipping to $15.04, the contract's lowest since Jan. 12.
CBOT March corn was down 1-1/2 cents at $6.75-3/4 a bushel while March wheat was up 6-3/4 cents at $7.41-1/4 a bushel.
South American crop weather remained the focus of the soy complex given drought in Argentina, the world's largest supplier of soymeal and soyoil. Significant rainfall forecast for January could avert further drought losses to Argentina's soybean and corn crops, after analysts already slashed production estimates.
"Wetter weather is finally expected in Argentina over the next 10 days, easing dryness concerns and reducing crop stress, but drier weather may return by the 11-15 day period," space technology company Maxar said in a daily weather note.
Brazil, meanwhile, is on track to produce a record soy crop, which may hasten a seasonal shift in export demand away from U.S. supplies.
Argentina weather outlook pressured corn futures but the market pared losses as traders digested the U.S. Department of Agriculture's weekly export sales report which pegged sales of U.S. 2022/23 corn at 1.1 million tonnes, above a range of trade expectations.
"Corn had a fabulous export sales report. It's just one week, but if we can keep that up, then we've got something to talk about," said Jack Scoville, analyst with the Price Futures Group in Chicago.
Weekly U.S. old-crop wheat sales also topped expectations at 473,100 tonnes, lifting CBOT wheat futures.
"Everybody has been moaning about the lack of demand, and deservedly so. But today was a little better," Scoville said, adding that CBOT wheat futures were due for a bounce. "There is some short-covering going on," he said.
For the week, the CBOT March wheat contract was down 0.5% and hovering just above long-term lows set last week. March corn was roughly flat for the week while March soybeans were on track for a 1.5% weekly decline. (Reporting by Julie Ingwersen; additional reporting by Gus Trompiz in Paris and Enrico Dela Cruz in Manila; editing by Subhranshu Sahu, Emelia Sithole-Matarise and Josie Kao)
