GRAINS-Soybeans extend drop on ample supplies, Iran attack

Naveen Thukral

* Soybeans lose more ground on crop-friendly LatAm weather

* Iran's missile attack on U.S.-led forces in Iraq add pressure

* Concerns over Chinese demand hit by African swine fever

(Adds details, quote in paragraph) SINGAPORE, Jan 8 (Reuters) - Chicago soybean futures slid for a second session on Wednesday, with prices weighed down by expectations of a record production in Brazil and concerns over Chinese demand hit by African swine fever. Sentiment was also dented following Iran's missile attack on U.S.-led forces in Iraq, which sparked fears of a wider conflict in the Middle East. The most-active soybean contract on the Chicago Board Of Trade was down 0.3% at $9.41-1/4 a bushel, as of 0334 GMT, having closed 0.1% weaker on Tuesday. Corn fell 0.5% to $3.82-3/4 and wheat slid 0.5% to $5.47-3/4 a bushel. "We have no issues with global supplies," said a Singapore-based trader. "The situation in the Middle East is bullish for oil and gold, but for most other commodities it is bearish." Traders are monitoring corn and soybean crop weather in Brazil and Argentina as farmers in top soy exporter Brazil get set to begin harvesting a massive crop in the coming weeks. Crop conditions are favorable in much of Brazil and Argentina while the key Brazilian soybean state of Rio Grande do Sul, which has been dry, is forecast to receive rain later this week, according to Kyle Tapley, meteorologist with Maxar. Iran said it launched a missile attack on U.S.-led forces in Iraq in the early hours of Wednesday in retaliation for the U.S. drone strike on an Iranian commander. The U.S. Department of Agriculture (USDA) on Friday will issue a latest report that is expected to show smaller U.S. corn and soy crops, lower U.S. winter wheat seedings and tighter end-of-season grain stocks. Grain markets were also awaiting further details on a Phase 1 U.S.-China trade deal that is expected to significantly bolster Chinese purchases of U.S. agricultural goods. On the technical front, CBOT March soybean may retest a resistance at $9.46 per bushel. A break could lead to a gain into a range of $9.51 to $9.59-1/2, according to Wang Tao, a Reuters analyst for commodities technicals.

Commodity funds were net sellers of CBOT corn, soybean and soymeal futures contracts on Tuesday, net buyers of soyoil and net even in wheat, traders said.

Grains prices at 0334 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSICBOT wheat 547.75 -2.50 -0.45% -0.41% 540.08 43CBOT corn 382.75 -1.75 -0.46% -0.52% 383.00 38CBOT soy 941.25 -2.75 -0.29% -0.37% 921.22 56CBOT rice 13.04 -$0.03 -0.19% -0.15% $12.88 49WTI crude 63.45 $0.75 +1.20% +0.28% $59.98


Euro/dlr $1.116 $0.001 +0.04% -0.33%USD/AUD 0.6874 0.001 +0.09% -0.94%

Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential

(Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips)