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Markets: Soybeans hover near two-month low as rain is awaited

LONDON - U.S. soybean futures edged up on Aug. 19 but remained just above the previous week's two-month low following forecasts for much-needed rains across the U.S. Midwest during the crop's crucial yield-determining phase.

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LONDON - U.S. soybean futures edged up on Aug. 19 but remained just above the previous week's two-month low following forecasts for much-needed rains across the U.S. Midwest during the crop's crucial yield-determining phase.

Corn rose to a one-week high as a marginal decline in U.S. crop ratings continued to support the market, while wheat prices were barely changed.

Chicago Board of Trade November soybeans were up 0.3 percent at $9.07 a bushel in morning trading, with the market holding just above a two-month low of $9.01-1/2 a bushel set on Aug. 12.

Weather forecasts for the United States show widespread rain in the coming week, which should help soy crops in dry parts of the Midwest. August weather is critical for determining the size of the U.S. soybean crop.

"The weather is looking good in the U.S. which means we will see another year of plentiful soybean supplies. Brazilian soybeans supplies are still running strong while U.S. marketing season is about to start," says Phin Ziebell, agribusiness economist with National Australia Bank.

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"Internationally, supplies are looking very good and markets are responding to that."

December corn on the Chicago Board of Trade was up 0.5 percent at $3.79 a bushel after earlier climbing to a one-week high of $3.79-3/4.

A weekly U.S. Department of Agriculture report on Monday showed a slight decline in the condition of the corn crop while ratings for soybeans were unchanged. 

Corn yields in Indiana were likely to come in below average, and lower than government forecasts, after excessive rains during the spring drenched fields and hindered growth potential for crops still in early stages of development, scouts on an annual tour found on Tuesday.

Soybean pod counts in the state also were trending below average.

The tour estimated Nebraska's corn yield at 165.16 bushels per acre, topping the 163.77 estimated by the tour last year and the group's three-year average of 150.16 bushels.

Chicago Board of Trade December wheat was unchanged at $4.98-3/4 a bushel while December wheat in Paris fell a marginal 0.1 percent to 178.50 euros a tonne.

Dealers said European prices continued to be weighed by the prospect of a large crop in France although the outlook elsewhere in the EU is less favorable.

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"The situation is quite different in other EU countries such as Great Britain, Poland and not least in Germany," Commerzbank says.

Related Topics: MARKETSCROPSSOYBEANS
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