Soybean up

SINGAPORE: Chicago soybeans started 2017 trading on Tuesday by edging higher, snapping two sessions of decline on expectations of strong Chinese demand although ample world supplies kept a lid on the market.

Corn rose for a third consecutive session while wheat was little changed following two days of gains. The most-active soybean contract on the Chicago Board Of Trade climbed 0.3 percent to $10.06-1/2 a bushel by 0330 GMT, corn advanced 0.5 percent to $3.53-3/4 a bushel and wheat was little changed at $4.08-1/4 a bushel.

"China is a big story in terms of demand for soybeans, we saw strong demand last year and it is expected to grow in 2017," said Phin Ziebell, agribusiness economist, National Australia Bank. "But it is fair to say Brazil´s output is expected to be a record, so South American crop is looking really good.

Fundamentals are not supporting prices as inventories are so high. " Brazil is expected to produce 102 million tonnes of soybeans in 2016/17, up from 96.5 million tonnes a year ago, according to U.S. Department of Agriculture estimates.