* Wheat recovers after two days of deep losses push prices
* Expectations of higher world supplies cap gains
SINGAPORE, Dec 2 (Reuters) - Chicago wheat edged up on
Wednesday, after suffering losses in the previous two sessions
that dragged the market to its lowest in two months on lack of
demand for U.S. cargoes and improving global supply situation.
Corn and soybeans lost more ground, hitting their lowest
levels in two weeks.
"The U.S. price falls look meaningful because prices are at,
or a shade below, the low side of recent ranges," said Tobin
Gorey, director of agriculture strategy at the Commonwealth Bank
The most-active wheat contract on the Chicago Board Of Trade
(CBOT) lost 0.3% to $5.78-3/4 a bushel by 0247 GMT, after
dropping in the previous session to its lowest since Oct. 5 at
$5.74 a bushel.
Corn gave up 0.3% to $4.19-1/2 a bushel and soybeans
fell 0.4% to $11.57-1/2 a bushel. Earlier in the session,
both markets hit their lowest since Nov. 17.
Wheat futures have faced pressure amid a lack of interest
for U.S. supplies with Black Sea continuing to win business.
Egypt's main state grains buyer purchased 170,000 tonnes of
Russian and Ukrainian wheat in an international purchase tender.
No U.S. wheat was offered.
The U.S. Department of Agriculture late Monday rated 46% of
U.S. winter wheat in "good-to-excellent" condition, up from 43%
a week earlier, bucking trade expectations for no change.
Still, ratings were down from a year earlier, reflecting
drought in much of the U.S. Plains breadbasket as the crop
enters winter dormancy.
The Australian Bureau of Agricultural and Resource Economics
and Sciences raised its estimate of the country's 2020/21 wheat
harvest to 31.17 million tonnes, from its September forecast of
CBOT corn and soybeans are being weighed down by a
fund-driven liquidation and improving crop weather in Brazil and
StoneX, a commercial grain brokerage, raised its forecast of
Brazil's 2020/21 soybean crop to 133.9 million tonnes from 133.4
Commodity funds hold sizable net long positions in CBOT corn
and soybean futures, leaving both markets prone to bouts of long
liquidation as the calendar year winds down.
(Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips)