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CBOT soybeans weighed down by South American supplies

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Wheat bounces on bargain buying, technical trading

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Corn ticks higher

(Recasts throughout; adds bullets, new headline, new comment,

changes dateline previously HAMBURG)

By Heather Schlitz

CHICAGO, March 11 (Reuters) - Chicago Board of Trade

soybean futures drifted lower on Monday, amid ongoing pressure

from a hefty global supply and signs of investors hunting for

profits, traders said.

Corn futures spent much of the early session lower but

ticked up by mid-day.

However, a bearish outlook on corn and soy will likely

continue to suppress prices, Karl Setzer, partner at Consus Ag

Marketing, said.

CBOT wheat futures bounced after the May contract

slumped to a new life-of-contract low on Monday, riding on

momentum from rising Kansas City and MGEX wheat futures, Setzer

said.

Chicago Board of Trade most-active soybeans fell 6-3/4

cents to $11.77-1/2 a bushel at 1609 GMT, after reaching

$11.89-1/4 a bushel, their highest price since Feb. 14. Corn

rose 1 cent to $4.40-3/4 a bushel.

Wheat was up 9-1/4 cents, to $5.47 a bushel, despite

exporters cancelling yet another sale for 264,000 metric tons of

CBOT wheat destined to China on Monday. The announcement

followed two cancellations last week totalling 240,000 tons of

SRW wheat to China.

Falling Russian wheat export prices and high supply in the

world market continue to smother demand for U.S. wheat, analysts

said.

Soybeans could not shake pressure from a global glut,

traders said. The USDA slightly lowered its Brazilian soybean

crop forecast, but its outlook was above many private estimates

and reminded dealers of plentiful South American supplies.

"The simple fact that we didn't get a bullish (supply and

demand) report has led to lackluster trading this morning,"

Setzer said. "Most of what we're seeing is fund positioning

after the report."

The U.S. has faced stiff competition from Brazil and

Argentina's grain harvests, with Argentina's scheduled corn

exports hitting their highest levels in at least five years,

boosted by leftover stocks from the previous season.

"There's not enough interest in the market to attract fresh

buying, but funds are heavily short so that's presenting

liquidation," Setzer said.