(New throughout; updated byline, dateline previously PARIS/CANBERRA)
By Christopher Walljasper
CHICAGO, March 26 (Reuters) - Chicago soybean futures slid on Friday, pressured by declines in soyoil and funds squaring positions ahead of the U.S. Department of Agriculture's grain stocks and planting intentions reports due March 31, traders said. Corn and wheat rebounded from prior day losses, though gains were capped in wheat by improved crop weather.
The most-active soybean futures contract on the Chicago Board of Trade fell 10-3/4 cents to $14.03-1/2 per bushel as of 12:18 p.m. CDT (1718 GMT).
CBOT wheat futures added 5-3/4 cents to $6.18-1/4 per bushel while corn gained 7-1/4 cents to $5.53-3/4 per bushel.
CBOT soybean oil futures pulled soybeans lower as the May oil contract dropped to a 2-1/2 week low, though it remains near a contract high set this week.
"Bean oil looks like it's in a correction phase," said Tom Fritz, commodity broker at EFG Group, noting demand for soyoil could remain strong. "Soybean use for biodiesel is the best it’s ever been."
A sluggish soymeal market also added pressure following bearish data in a quarterly USDA hog report, according to Mark Schultz, chief analyst at Northstar Commodity.
"Hog and pig report out yesterday showing fewer hogs out there than expected, that’s going to continue to cut back on your meal consumption," said Schultz
Wheat rebounded from a three-month low overnight, though continued moisture across the U.S. Plains as well as in Russia is likely to boost production prospects in the two major exporting nations.
As the price spread between wheat and corn narrows, Schultz said, wheat becomes a more attractive feeding option for animal producers.
"Wheat’s going into feed ration, at the expense of corn," said Schultz. "Wheat maybe starts getting some support, because of demand coming in."
The International Grains Council on Thursday forecast global grain production would climb to a record 2.287 billion tonnes in the 2021/22 season, but it expects the larger supply to be entirely absorbed by higher consumption. (Reporting by Christopher Walljasper Editing by Marguerita Choy)
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