Chicago agricultural commodities close slightly lower

Chicago Board of Trade (CBOT) grains futures settle slightly lower Thursday with soybean futures falling to a new one-month low as forecasts for rain in Argentina dampened concerns about dryness hurting production there.

The most active corn contract for March delivery stayed unchanged at 3.4725 dollars per bushel. March wheat delivery fell 2.5 cents, or 0.63 percent, to 3.97 dollars per bushel. January soybeans dropped 13 cents, or 1.28 percent, to 10.04 dollars per bushel.

Rains in dry areas of Argentina, a major exporter, should keep South America on track to produce a bumper soybean harvest, traders said. Earlier this month, dryness fuelled worries about planting problems and boosted futures prices.

Traders have been keeping an eye on weather in South America because the United States competes with Argentina and Brazil for business on the global export market.

Demand for U.S. soybeans has been solid, with the U.S. Department of Agriculture reporting weekly export sales at 1.8 million tonnes. That was above analysts' expectations for 1.1 to 1.4 million.

U.S. corn export sales also topped expectations while wheat sales barely missed analysts' estimates.

The United States faces stiff competition for wheat sales from other countries with ample supplies.

Argentina's agriculture ministry projected the country's 2016/17 wheat crop at 15.7 million tonnes, up from a previous estimate of 14.9 million due to bigger-than-expected yields.

For soybeans, the ministry estimated farmers will plant 20.3 million hectares in the 2016/17 season, up slightly from a previous forecast. Endit