Soybean futures dip as Brazil drought concerns ease
CANBERRA, Sept 19 (Reuters) -Soybean futures edged lower on Thursday as traders eased their concerns that hot, dry weather in top producer Brazil might threaten soybean seeding, while the ongoing U.S. harvest added supply to the market.
Wheat futures retreated further from three-month highs as strong Black Sea exports offset poor production in Europe. Corn also fell.
FUNDAMENTALS
* The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was down 0.2% at $10.11-3/4 a bushel, as of 0041 GMT, while CBOT corn Cv1 fell 0.4% to $4.11 a bushel and wheat Wv1 slipped 0.4% to $5.73-1/2 a bushel.
* All three contracts hit four-year lows in July or August. They have since benefited from a weakening dollar, which has made U.S. farm goods cheaper for overseas buyers, but prices remain not far from their lows. FRX/ USD=
* A delayed rainy season in Brazil, the biggest soybean producer and exporter, has depleted moisture levels in large areas of the country, complicating planting.
* However, analysts say the drought won't become alarming unless it stretches into October, and Brazilian crop agency Conab still projects a bigger crop than last season's.
* Numerous weather forecasters expect a La Nina weather pattern to develop in the Pacific, which would typically lead to drier weather in South America. But Australia's weather bureau said that if one forms in the coming months it will be likely be weak and short-lived.
* "The briefer and weaker La Nina forecast mutes some of the bullish concerns (for soybeans)," StoneX analyst Bevan Everett said in a note, adding, "planting is so early that a small delay doesn't drive acreage losses."
* Meanwhile, the U.S. soy and corn harvests are advancing rapidly and expected to be very large.
* "U.S. harvest pressure should continue to cap any rallies," said another StoneX analyst Matt Zeller.
* In wheat, FranceAgriMer sharply cut its forecast for French soft wheat exports after a poor crop and said the protein content of France's grain would be well below long-term averages.
* However, Russian wheat export prices remain low and its exports are expected to remain strong in September, consultancy Sovecon said.
MARKETS NEWS
* Major stock indexes closed with modest losses and the dollar gained ground in choppy trading on Wednesday after the U.S. Federal Reserve opted for a supersized cut in its first change to borrowing costs in more than four years. MKTS/GLOB
Reporting by Peter Hobson; Editing by Sherry Jacob-Phillips
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