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Soy chops up and down as traders weigh demand

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Expectations of high U.S. corn yields weigh on corn, wheat

futures

(Updates for market close, changes second bullet)

By Heather Schlitz

CHICAGO, Aug 5 (Reuters) - Chicago wheat futures plunged

to contract lows on Tuesday to approach their lowest point since

2020 as sinking corn futures and seasonal supply pressure from

Northern Hemisphere harvests weighed on the market, traders

said.

Corn edged down to set fresh contract lows, with steady U.S.

crop conditions and expectations of a bumper U.S. corn harvest

keeping the focus on ample supply.

Soybeans chopped up and down, supported by

larger-than-expected weekly U.S. export inspections, though a

lack of Chinese demand weighed on the market.

The most-active wheat contract on the Chicago Board of Trade

fell 8-1/2 cents to $5.08-1/4, with all wheat contracts

hitting contract lows. CBOT December corn fell 5 cents to

close at $4.02 a bushel.

"Wheat's had a rough run of it. Corn and wheat have taken

turns taking each other lower," said Jim Gerlach, president of

A/C Trading.

Rain has also eased concerns over dryness affecting wheat in

Canada, as well as in Southern Hemisphere exporters Australia

and Argentina. Recent updates on the state of the U.S. corn crop

have also weighed on prices.

CBOT November soybeans settled down 3-3/4 cents to

$9.90-3/4 per bushel as China continued to shun purchases of

U.S. soybeans.

Commodity brokerage StoneX projected on Monday U.S. 2025 corn

production at 16.323 billion bushels, above the U.S. Department

of Agriculture's latest corn harvest projection. The USDA on

Monday also reported that 73% of the corn crop was in good to

excellent shape, a nine-year high.

"China is normally buying at this time of year. Beans have

more of a demand problem rather than supply problem. Until we

see evidence that China is buying beans, it's going to be hard

for soy to rally," Gerlach said.

Meanwhile, Archer-Daniels-Midland posted its lowest

second-quarter profit in five years on Tuesday as U.S. trade

upheaval and uncertainty around biofuel policies slowed sales

and crimped trading and crop processing margins.