* U.S. soybean prices up after 2 sessions of deep losses
* Corn dips on expectations of record U.S. production (Adds detail, comment)
By Naveen Thukral
SINGAPORE, Aug 13 (Reuters) - U.S. soybean prices edged higher on Wednesday as the market took a breather after two day’s of deep losses which dragged new-crop prices to a contract low in the last session after a government report predicted record output.
Corn lost ground as the U.S. Department of Agriculture’s forecast for record domestic production weighed on prices, although losses were limited as the estimate fell below market expectations.
Chicago Board of Trade November soybeans had risen half a percent to $10.64-1/2 a bushel by 0233 GMT, after dropping 1.3 percent in the last session when prices marked a contract low of $10.43 a bushel.
December corn fell 0.2 percent to $3.68-1/4 a bushel, while front-month wheat gained 0.4 percent to $5.40 a bushel after closing down 1.6 percent on Tuesday.
“The USDA report is bearish for corn, soybeans and wheat, but strong export demand for U.S. soybeans should prevent new-crop prices from falling below $10.50 a bushel,” said Kaname Gokon, general manager of research at brokerage Okato Shoji in Tokyo.
“Corn prices should slowly decline as we get closer to the U.S. harvest.”
U.S. corn production in 2014 will crack the 14-billion-bushel mark for the first time and soybean output will also be a record, setting up a tripling of ending stocks in 2014/15, the USDA said in its monthly supply-demand report on Tuesday.
Still, U.S. corn production was pegged by the USDA at 14.03 billion bushels, below trade estimates averaging 14.25 billion bushels. Ending stocks were seen at 1.8 billion bushels, also below estimates.
The USDA estimated the U.S. soybean crop at a record of 3.82 billion bushels, up 16 percent on the year and close to trade expectations.
The wheat market is also struggling as the agency forecast higher global supplies. It projected U.S. wheat ending stocks were little changed on the month, but global wheat stocks jumped to almost 193 million tonnes, above expectations.
Russia’s wheat crop rose by 6 million tonnes on the month, crisis-torn Ukraine’s production was forecast 1 million tonnes higher, and the Chinese crop was raised by 2 million.
Consultancy UkrAgroConsult revised its outlook for Ukraine’s grain exports in the 2014/15 season 2.5 percent higher to 32.5 million tonnes on Tuesday.
Prices at 0233 GMT Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 540.00 2.00 +0.37% -1.19% 542.95 45 CBOT corn 368.25 -0.75 -0.20% +0.00% 379.74 41 CBOT soy 1064.50 5.00 +0.47% -0.82% 1087.53 62 CBOT rice $12.76 $0.04 +0.28% +0.20% $13.22 35 WTI crude $97.20 -$0.17 -0.17% -0.90% $100.85 30 Currencies Euro/dlr $1.336 -$0.001 -0.04% -0.16% USD/AUD 0.928 0.002 +0.16% +0.19% Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (Reporting by Naveen Thukral; Editing by Joseph Radford)