Wheat up on global supply worries, soybeans and corn down

Large import tenders also support wheat

A reaper harvests a field of wheat in Orezu, southeastern Romania, July 2, 2014.

A reaper harvests a field of wheat in Orezu, southeastern Romania, July 2, 2014.

REUTERS/Bogdan Cristel

HAMBURG- Chicago wheat rose on Monday on concerns about harvest losses in key exporting countries meeting strong demand with a series of buying tenders issued by importers.

Soybeans and corn fell on welcome rain in U.S. crop regions.

Chicago Board of Trade most-active wheat rose 0.8% to $7.38-1/2 a bushel at 1037 GMT. Soybeans fell 0.1% to $13.21-1/2 a bushel, corn fell 0.6% to $5.50 a bushel.

Fears about tight global supplies, which pushed wheat to 8-1/2 year highs earlier in August, continue to support.

Major forecasters have switched their 2021/22 wheat market balance estimates into deficit following poor harvests in several exporting countries, Commerzbank said.

“Besides the poor spring wheat crop in the U.S. and Canada, it is above all the figure for the Russian crop that has been massively lowered,” Commerzbank said.

Russian wheat export prices rose for the seventh consecutive week last week, consultancy IKAR said. 

Russian consultancy Sovecon cut its forecast for Russia's 2021/22 wheat exports by 3.2 million tonnes following the country's smaller crop, slow shipments and tough competition. 

Traders also noted strong purchase interest for wheat, with leading importers Egypt and Algeria both undertaking international purchase tenders this week.  Purchase tenders have also been announced by buyers including Pakistan, Turkey and Jordan.

“Corn and soybeans are being weakened today by more welcome rain in the U.S. Midwest crop belts,” said Matt Ammermann, StoneX commodity risk manager. “Chinese demand for U.S. soybeans is active but more Chinese buying is needed to support prices.”

“Although rains are late for U.S. corn, most of the northern/central Midwest is getting a nice drink while temperatures are forecast to remain about normal which is positive news for U.S. crops.”

“The USDA crop conditions report later on Monday is expected to show steady to slightly lower corn conditions amid recent dryness and warmer temperatures in the eastern U.S. corn belt.”

(Reporting by Michael Hogan in Hamburg, additional reporting by Naveen Thukral in Singapore; Editing by Hugh Lawson) ((michael.j.hogan@thomsonreuters.com; +49 172 671 36 54; Reuters Messaging: michael.hogan.thomsonreuters.com@reuters.net))

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