Corn futures for December delivery fell 0.5% to US$3.9325 a bushel on the CBOT at 11 a.m. in Singapore after trading between US$3.925 and US$3.975. Futures advanced 4.5% in the two days before USDA issued the latest supply estimates last Friday (July 9).

The USDA estimates were "not as bullish as expected," Commonwealth Bank of Australia said in a report published today (July 12).

The US agency also raised its estimate for US soy production to 3.345 billion bushels, from 3.31 billion bushels in June, as the area harvested was forecast to expand to a record 78 million acres (31.6 million hectares).

Soy for November delivery lost 0.5% to US$9.485 a bushel. It traded between US$9.4675 and US$9.5575 a bushel.

September delivery wheat was 0.3% weaker at US$5.3625 a bushel on the CBOT, after swinging between gains and losses.

Wheat futures earlier gained as much as 0.7% as dry weather persisted in Russia and Kazakhstan, raising concern that global supply may be smaller than estimated by the USDA.

USDA on Friday (July 9) cut its estimate on global stockpiles of wheat at the end of the 2010-2011 marketing year by 6.9 million tonnes, or 3.5%, from a month earlier as it pared its output estimates for some exporters including Russia and Kazakhstan on expectations that dry weather will curb yields.

The market is getting "support from the USDA's" forecast, Michael Pitts, director for commodity sales at National Australia Bank Ltd., said today (July 12).