CANBERRA, Dec 11 (Reuters) – U.S. wheat futures steadied on Thursday, having fallen nearly 1% in the previous session after the U.S. Department of Agriculture (USDA) raised its estimates for global production and end-of-season stocks, cementing expectations for ample supply.
Soybean futures gained for a second day after the USDA confirmed more sales of U.S. beans to China. Corn edged higher amid strong U.S. export demand.
* The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.2% at $5.30-1/2 a bushel, as of 0141 GMT, after falling to $5.25-1/4 on Wednesday, its lowest since October 31.
* CBOT soybeans were up 0.2% at $10.93-3/4 a bushel, having also slipped in the previous session to the lowest since late October.
* Corn rose 0.1% to $4.44-1/2 a bushel.
* The USDA on Tuesday raised its wheat production forecasts for this season in major exporters including Russia, Australia and Canada and increased its global ending stocks estimate by 3.4 million metric tons, more than most analysts had expected.
* Traders, however, remain wary of attacks on shipping in the Black Sea that could disrupt exports and push up prices.
* The USDA on Wednesday announced a series of fresh purchases of U.S. soybeans, confirming private sales of 136,000 tons of U.S. beans to China, another 331,000 tons to undisclosed destinations and 120,000 tons of soymeal to Poland.
* CBOT soybeans have fallen around 6.5% from a 17-month high of $11.69-1/2 last month, as China bought fewer beans from the United States than traders had anticipated.
* StoneX analyst Arlan Suderman said China had now purchased around 6 million tons of U.S. soybeans since Washington and Beijing agreed a trade truce in late October – far below the 12 million tons that U.S. officials said China would buy by year-end.
* Top soybean producer Brazil is also just a few weeks from beginning what is expected to be a record harvest, though LSEG analysts said heavy rain was disrupting cropping in parts of the country.
MARKETS NEWS * Major stock indexes jumped while U.S. Treasury yields declined on Wednesday after the Federal Reserve cut interest rates as expected and investors remained hopeful about further cuts ahead, even as the central bank signalled it will likely pause reductions for now.
(Reporting by Peter Hobson; Editing by Subhranshu Sahu)
