U.S. soybeans futures slip on expected stocks increase

(Reuters) - U.S. soybean futures drifted lower in early Asian trade on Tuesday on expectations that the U.S. Department of Agriculture (USDA) will raise its forecast of U.S. soybean stocks this week, due a slowdown in domestic usage.

Chicago Board of Trade soybeans futures for November delivery, the harvest month contract, fell 0.39 percent to $13.49-/2 per bushel while the front month March contract slipped 0.36 per cent to $13.90.

Corn for March delivery rose 0.17 percent at $7.18-3/4 per bushel in directionless trade as the market remained poised for Thursday's USDA data.

Wheat futures fell with the March contract slipping 0.31 percent to $7.98- per bushel after the market shrugged off Iraq buying mostly U.S. wheat in a large weekend tender.

FUNDAMENTALS

* For the first time in 11 months, the U.S. Department of Agriculture (USDA) this week is expected to raise its forecast of U.S. soybean ending stocks, due a slowdown in domestic usage.

* The USDA has cut its estimate or left it unchanged each month since it released its first forecast of 2010/11 soy ending stocks last May. USDA was scheduled to release its March supply/demand reports on Thursday.

* The USDA projected 2010/11 soybeans crushings at 1.655 billion bushels in February, unchanged from January. Exports were pegged by the USDA at 1.590 billion in February.

(Source: http://www.reuters.com/article/2011/03/08/businesspro-us-markets-grains-idUSTRE7265Y820110308)