Chicago wheat hovers near 2-month low on supply pressure

SINGAPORE, Dec 2 (Reuters) - Chicago wheat futures slid for a third day on Wednesday, trading near previous session's lowest in nearly two months on lack of demand for U.S. cargoes and improving global supply situation.

Corn and soybeans dropped to their lowest levels in two weeks.

FUNDAMENTALS

* The most-active wheat contract on the Chicago Board Of Trade (CBOT) lost 0.1% to $5.76-3/4 a bushel by 0125 GMT, after dropping in the previous session to its lowest since Oct. 5 at $5.74 a bushel.

* Corn gave up 0.5% to $4.18-1/2 a bushel and soybeans fell 0.3% to $11.58 a bushel. Earlier in the session, both markets hit their lowest since Nov. 17.

* Wheat futures have retreated amid a lack of interest for U.S. supplies with Black Sea continuing to win business.

* Egypt's main state grains buyer purchased 170,000 tonnes of Russian and Ukrainian wheat in an international purchase tender. No U.S. wheat was offered.

* The U.S. Department of Agriculture late Monday rated 46% of U.S. winter wheat in "good-to-excellent" condition, up from 43% a week earlier, bucking trade expectations for no change.

* Still, ratings were down from a year earlier, reflecting drought in much of the U.S. Plains breadbasket as the crop enters winter dormancy.

* The Australian Bureau of Agricultural and Resource Economics and Sciences raised its estimate of the country's 2020/21 wheat harvest to 31.17 million tonnes, from its September forecast of 28.91 million.

* CBOT corn and soybeans are facing pressure on fund-driven liquidation and improving crop weather in Brazil and Argentina.

* StoneX, a commercial grain brokerage, raised its forecast of Brazil's 2020/21 soybean crop to 133.9 million tonnes from 133.4 million previously.

* Commodity funds hold sizable net long positions in CBOT corn and soybean futures, leaving both markets prone to bouts of long liquidation as the calendar year winds down.

MARKET NEWS

* Asian markets were set to climb on Wednesday after Wall Street indexes closed at record highs as investors grow increasingly hopeful about a vaccine to combat rising COVID-19 cases and an economic recovery.

DATA/EVENTS (GMT) 0030 Australia Real GDP QQ, YY SA Q3 1000 EU Unemployment Rate Oct 1900 US Federal Reserve issues the Beige Book of economic condition (Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips)