(Updates prices as of 1700 GMT, adds analyst comments, details, changes byline, previous dateline BEIJING/PARIS)
CHICAGO, March 5 (Reuters) - Chicago Board of Trade soybean futures slipped on Tuesday, surrendering gains from the previous session as large supplies from South America weighed on the market.
Corn and wheat futures also failed to sustain an overnight rise fueled by bargain buying.
Traders are waiting for the U.S. Department of Agriculture's monthly
supply and demand report
on Friday to assess the latest estimates on corn and soy production in South America.
Corn and soy prices are hovering near three-year lows.
"We're in a lull right now," said Rich Nelson, chief strategist at Allendale.
The most-active soybean contract was down 5 cents at $11.50 per bushel at 11 a.m. CST (1700 GMT). Wheat tumbled 15 cents to $5.49 a bushel. Corn slipped 3-3/4 cents to $4.26-1/4 a bushel.
Increased fund selling pushed prices lower, said Terry Reilly, senior agricultural strategist for Marex. Tough competition from cheap Black Sea exports and weakness in Paris wheat contributed to the decline in CBOT wheat, he said.
Forecasts for Brazil and Argentina's soybean harvests are expected to be bountiful, despite some analysts downgrading Brazilian harvest forecasts. Analysts on average expect USDA to lower its estimate for Brazil's harvest to 152.28 million metric tons, down 3.72 million from last month, a Reuters poll showed.
The large South American supplies are expected to boost global stocks this season.
"As a result, no further significant price recovery can be expected in the short term," Commerzbank said.
China, the world's biggest soybean importer, sharply expanded its budget to stockpile grains and edible oils this year and stepped up support and policies to boost soybean and grains production.
"This is a bearish issue but not until two to three years from now," Nelson said. "They don't have ability to sharply increase crop this year."
China also imported 65,000 metric tons of animal feed corn from Ukraine on Monday, European traders said. (Reporting by Heather Schlitz in Chicago; Additional reporting by Mei Mei Chu in Beijing and Sybille de La Hamaide in Paris; Editing by Eileen Soreng, David Evans and Richard Chang)
