Chicago soybean and corn futures recovered on Tuesday from sharp losses in the previous session after heavy rains hit the condition of the U.S. crop. However, hefty supplies were likely to limit further gains
in the oilseed, with demand from top buyer China seen weaker.
Wheat and corn also advanced after slumping on Monday. Soybeans for July delivery on the Chicago Board of Trade were up 0.2 percent at $9.39-3/4 per bushel by 1126 GMT,
edging up from Monday's two-week low of $9.30-1/4.
The soybean crop was rated 67 percent good to excellent, down from 69 percent last week following rains in the U.S. Midwest and southern Plains, according to the U.S. Department of
Overall, 87 percent of the soy crop was planted, up from 79 percent the week before but still behind the five-year average of 90 percent by mid-June.
"While we may see a little bit of volatility from time to time particularly on updates of crop conditions, ultimately we are likely to see a pretty large crop coming out of the Americas
and as a result we have a relatively bearish outlook on soybean prices," said Graydon Chong, senior grains analyst with Rabobank in Sydney.
"We do see softer demand out of China," said Chong, adding Rabobank sees soy moving towards $9 going forward.
CBOT front-month soybeans fell as far as $9.20-1/2 in May, its lowest since October last year.
CBOT July corn gained 0.65 percent to $3.50-1/2 a bushel with crop conditions in the top 18 states 73 percent good to excellent as of Sunday, down 1 point from the week before.
Corn fell nearly 2 percent to $3.46-3/4 on Monday, a level last seen in October.
Wheat climbed 0.2 percent to $4.92-3/4 a bushel, after sliding as much as 3.5 percent to a two-week trough of $4.86 overnight.
U.S. winter wheat conditions were 43 percent good to excellent, unchanged from the previous week, although the winter wheat harvest was 11 percent complete, about half the normal
Russia's IKAR, a leading Moscow-based agriculture consultancy, has downgraded its 2015 wheat crop forecast by 1 million tonnes to 55-59 million tonnes due to dry weather in
several regions of the country.
In Australia, a major wheat producer, the output forecast for the 2015/16 season starting July 1 was cut to 23.6 million tonnes from a previous estimate of 24.4 million tonnes as an El
Nino weather phenomenon dries out farmland.