SINGAPORE: Chicago corn and soybean futures lost more ground on Wednesday with U.S. forecasts for much-needed rains, following hot and dry weather conditions, easing concerns over crop output.

Wheat slid more than 1%, after rallying on Tuesday to a five-month high following Russia's attacks on Ukrainian ports and grain infrastructure that raised concerns about global supplies.

 

FUNDAMENTALS

* The most-active corn contract on the Chicago Board of Trade (CBOT) gave up 1% to $5.59-3/4 a bushel, as of 0018 GMT, and soybeans dropped 0.6% to $14.11-1/2 a bushel.

* Wheat lost 1.5% to $7.49-1/4 a bushel after climbing to its highest since Feb. 21 at $7.77-1/4 a bushel in the last session.

* Forecasts of crop-friendly rains in the U.S. Midwest weighed on corn and soybean futures.

* Traders continue to monitor crop weather in the U.S. Midwest as the region's corn finishes pollinating, a key growth stage in determining yields, while soybeans approach their pod-setting phase in August.

* Wheat prices rallied earlier this week after Russia destroyed Ukrainian grain warehouses on the Danube River in a drone attack, targeting a vital export route for Kyiv in an expanding air campaign that Moscow began last week after quitting the Black Sea grain deal.

* The International Monetary Fund estimated that Russia's exit from a deal allowing Ukrainian exports via the Black Sea could drive global grain prices up by 10-15%, but said it was continuing to assess the situation.

* Commodity funds were net sellers of CBOT corn, soybean and soyoil futures contracts on Tuesday and net buyers of soymeal and wheat futures, traders said.

 

MARKET NEWS

* Global equity markets and U.S. Treasury yields rose on Tuesday ahead of the Federal Reserve's expected interest rate hike and as markets awaited a stream of quarterly results from corporate heavyweights.

 

DATA/EVENTS (GMT) 0130 Australia CPI QQ, YY Q2 1000 France Unemp Class-A SA June 1400 US New Home Sales-Units June 1800 US Federal Open Market Committee announces its decision on interest rates followed by statement (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)