GRAINS-Wheat up for 2nd day on Tightening Supplies, Corn Faces Harvest Pressure

(Agriculture.com) – Wheat firms after hitting one-month low on Tuesday * Lower wheat output in Europe, Black Sea region supports prices * Expectations of record U.S. corn crop weighs (Updates prices, changes dateline) By Naveen Thukral SINGAPORE/PARIS, Aug 29 (Reuters) – Chicago wheat futures rose for a second session on Wednesday as tightening world supplies came back in focus after the market dropped to a one-month low on fund selling. Corn was little changed, trading near a six-week low on forecasts of a record U.S. crop, while soybeans edged higher after Tuesday’s deep losses. The Chicago Board of Trade’s most-active wheat contract added 1.2 percent to $5.29-1/2 a bushel by 1109 GMT, having closed marginally higher on Tuesday. Corn was virtually unchanged at $3.56-1/2 a bushel, after touching its lowest since July 16 at $3.55-3/4 a bushel in earlier trade. Soybeans were up 0.1 percent at $8.33-3/4 a bushel, having closed down 1.7 percent on Tuesday. “The push to sell Russian wheat before any export restrictions and investors liquidating their long positions has weighed on the wheat market, but we don’t see a downside from here as global supplies are tightening,” said Ole Houe, director of advisory services at brokerage IKON Commodities in Sydney. “Wheat prices are likely to move higher from here, but corn still has harvest pressure coming. U.S. corn is the cheapest feedgrain in the world.” Russian consultancy IKAR lowered its estimate of Russia’s 2018 wheat harvest to 69.6 million tonnes from 70.8 million tonnes previously. The firm left its Russian wheat export estimate unchanged at 32.5 million tonnes. Importers are returning to the market after the drop in wheat prices. Egypt’s main state wheat buyer purchased 350,000 tonnes of wheat in an international tender, including 290,000 tonnes of Russian origin and 60,000 tonnes of Ukrainian wheat. Soybeans are under pressure due to expectations of an all-time high U.S. crop at a time of a trade dispute with top buyer China which has clouded export prospects. The Pro Farmer advisory service last week projected 2018 U.S. soybean production at a record 4.683 billion bushels, topping the U.S. Department of Agriculture’s forecast for 4.586 billion bushels. Pro Farmer also projected U.S. corn yield of 177.3 bushels per acre, below the USDA’s forecast of 178.4 but still a record high, if realised. Commodity funds were net sellers of CBOT corn, soybean, soymeal and soyoil futures contracts on Tuesday and net even in wheat, traders said. Prices at 1109 GMT Last Change Pct End Ytd Move 2017 Pct Move CBOT wheat Mar 529.50 6.25 1.19 427.00 24.00 CBOT corn Mar 356.50 0.25 0.07 350.75 1.64 CBOT soy Mar 833.75 0.50 0.06 951.75 -12.40 Paris wheat Dec 200.75 2.50 1.26 162.50 23.54 Paris maize Nov 181.25 1.50 0.83 163.50 10.86 Paris rape Aug 371.75 0.50 0.13 347.75 6.90 WTI crude oil 68.90 0.37 0.54 60.42 14.04 Euro/dlr 1.17 0.00 -0.32 Most active contracts – Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne