Wheat up over 1% on lower supplies, U.S ratings support corn

Soybeans firm

  
A tractor drops wheat grains into a truck that will transport it to storage, during the wheat harvest in Shelbyville, Kentucky, U.S. June 29, 2021.

A tractor drops wheat grains into a truck that will transport it to storage, during the wheat harvest in Shelbyville, Kentucky, U.S. June 29, 2021.

REUTERS/Amira Karaoud

SINGAPORE/PARIS- Chicago wheat futures on Tuesday gained more than 1% on concern over global supplies at a time of strong demand, while corn bounced back from losses in the previous session after a government report showed a decline in U.S crop conditions.

The Chicago Board of Trade (CBOT) most-active wheat contract Wv1 was up 1.1% at $6.94-1/4 a bushel as of 1030 GMT, rising for the first time in six sessions.

Corn gained 0.75% to $5.14 a bushel and soybeans Sv1 rose 0.35% to $12.89-1/4 a bushel.

France cut its estimate of soft wheat production in the European Union's biggest grain grower by more than 600,000 tonnes on Tuesday to 36.06 million tonnes, citing wet summer weather. 

This comes at a time of strong global wheat demand, including a significant number of international tenders in the past week.

Technical factors also weighed on wheat prices. 

In the United States, the Department of Agriculture (USDA) in a weekly progress report rated 58% of the corn crop in good-to-excellent condition, down 1 percentage point from the previous week, while soybean ratings were unchanged at 57% good-to-excellent. Analysts surveyed by Reuters on average had expected no change for either crop.

"The further decline in plant quality, which the analysts had not anticipated, has at least lent slight buoyancy to (corn)prices this morning," Commerzbank said in a note.

Soybean futures were underpinned by recent exports, including a daily sales notice of 132,000 tonnes of soybeans to unknown destinations in the 2021/22 marketing year. 

Still, weekly export shipments were muted by damaged terminals at the U.S. Gulf after Hurricane Ida swept through the region in early September.

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

(Reporting by Naveen Thukral Editing by Devika Syamnath and Mark Potter) ((naveen.thukral@thomsonreuters.com; +65-6870-3829; Reuters Messaging: naveen.thukral.thomsonreuters.com@reuters.net))


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