* Soybeans rise around half pct after Monday's 1.6 pct slide
* U.S. forecast for all-time high production limits gains
* Wheat gains for 4th session out of five on short-covering
(Adds details, quotes)
By Naveen Thukral
SINGAPORE, Sept 13 Chicago soybean futures edged
up on Tuesday, recouping some of the previous session's deep
losses, although a key U.S. government report showing production
outstripping demand continued to keep a lid on gains.
Wheat gained for a fourth session out five on short-covering
and expectations of improved demand for U.S. shipments after
prices dropped to a 10-year low last month.
Chicago Board of Trade most-active soybean contract
climbed 0.4 percent to $9.67-3/4 a bushel 0259 GMT, having
closed down 1.6 percent on Monday.
Wheat advanced 0.1 percent to $4.09-3/4 a bushel,
having closed up 1.4 percent on Monday, while corn rose
0.3 percent to $3.40-1/2 a bushel after closing down 0.4 percent
in the session before.
"The USDA report was bearish for the soybean market, but we
are seeing a slight recovery in prices today," said Kaname Gokon
at brokerage Okato Shoji in Tokyo. "Fundamentals are pretty
bearish for soybeans."
Record demand for soybeans has paled in comparison to the
expected sharp gains in supply, which will leave U.S. farmers
and commercial operators with a growing stockpile of the oilseed
even as exports and crushings continue to rise.
The U.S. Department of Agriculture on Monday raised expected
demand for U.S. soybeans during the 2016/17 crop year by 35
million bushels, of which 25 million for exports and 10 million
But the already record production outlook was raised by a
whopping 141 million bushels, with increased yield forecasts
from top production states Iowa and Illinois leading the charge
amid near-perfect growing weather during the key development
month of August.
After the close on Monday, the USDA said 74 percent of the
corn crop is in good-to-excellent condition, unchanged from last
week and ahead of market expectations.
The USDA said 73 percent of the soybean crop is in
good-to-excellent condition, unchanged from last week and ahead
of market expectations.
In news which could be bullish for wheat prices, dry soil
may hit the sowing of winter grain in Ukraine, analyst
UkrAgroConsult said on Monday. Winter wheat accounts for 95
percent of Ukraine's overall wheat output, and the winter crop
is also a significant part of the barley harvest.
Commodity funds were net sellers of CBOT corn and soybean
futures contracts on Monday and net buyers of wheat futures,
(Reporting by Naveen Thukral; Editing by Himani Sarkar)