Soybeans fall as Brazil drought concerns ease, US dollar firms
Adds analyst comment and updates prices
CANBERRA, Sept 19 (Reuters) -Soybean futures dropped on Thursday on a firmer dollar and easing concerns that hot, dry weather in top producer Brazil will threaten the oilseed's sowing process, 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 as the U.S. harvest ramped up.
The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was down 0.6% at $10.08 a bushel, as of 0210 GMT, while CBOT corn Cv1 fell 0.6% to $4.10-1/4 a bushel and wheat Wv1 slipped 0.7% to $5.71-1/2 a bushel.
All three contracts hit four-year lows in July or August amid plentiful supply.
They have since benefited from a weaker dollar, which made U.S. farm goods cheaper for overseas buyers, but prices remain not far from their lows and the greenback rose sharply on Thursday. FRX/ USD=
"Soy is still oversupplied globally," said Ole Houe at IKON Commodities in Sydney. "We have 35 million tons more soybean production this year than last year and stocks are up."
With U.S. soy and corn harvests advancing rapidly and expected to be very large, soybean futures are likely to fall towards last month's low of 9.55 a bushel, Houe said.
Analysts and traders say drought in top soy producer Brazil won't become alarming unless it stretches into October, and Brazilian crop agency Conab is still projecting a bigger crop than last season's.
Numerous weather forecasters expect a La Nina weather pattern to develop soon, which would typically make South America drier. But Australia's weather bureau said 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.
"Planting is so early that a small delay doesn't drive acreage losses," he said.
In wheat, FranceAgriMer cut its forecast for French 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 are still low and its exports are expected to remain strong in September, consultancy Sovecon said.
Reporting by Peter Hobson; Editing by Sherry Jacob-Phillips
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