CHICAGO, Dec 2 (Reuters) - U.S. soybean futures dipped to a
2-1/2 week low on Wednesday as forecasts for much-needed rains
in portions of Brazil's crop area prompted a round of long
liquidation and profit-taking, traders said.
Wheat futures rose, rebounding on bargain buying a day after
the benchmark Chicago Board of Trade (CBOT) March contract
fell to a two-month low, and corn futures turned up, rallying
from early weakness.
CBOT January soybeans settled down 9 cents at $11.53
per bushel after falling to $11.42-1/2, the contract's lowest
since Nov. 13.
CBOT March wheat ended up 11-1/4 cents at $5.88-1/2 a
bushel, and March corn finished up 3 cents at $4.23-3/4 a
bushel.
Soybeans declined as traders focused on forecasts for
improving crop weather in portions of Brazil, the world's
biggest soy exporter.
"The increased rainfall across most of Brazil over the next
week will begin to reduce stress on the corn and soybean crops.
Follow-up rains will be needed to completely end the dryness,"
Kyle Tapley, a meteorologist with space technology company
Maxar, wrote in a client note.
Commodity funds hold a large net long position in CBOT
soybean futures, leaving the market vulnerable to bouts of long
liquidation. So far in 2020, benchmark soybean futures are
up about 21%.
Forecasters Datagro and StoneX on Tuesday raised their
estimates for Brazil's 2020/21 soybean crop to 134.98 million
tonnes and 133.9 million tonnes respectively.
CBOT wheat climbed in a bounce from two-month lows hit on
Tuesday.
"Wheat led the ags higher as end-user buying returns on the
recent price break, with corn following for similar reasons,"
Arlan Suderman, chief commodities economist for StoneX, a
commercial brokerage, wrote in a client note.
CBOT wheat futures have eased since hitting multi-year highs
in October, pulled down by inconsistent demand for U.S.
supplies, with Black Sea suppliers continuing to win business.
(Reporting by Sybille de La Hamaide in Paris and Naveen Thukral
in Singapore; editing by Mark Potter and Grant McCool)