Wheat bounces off 2-month low, US view of higher supply caps gains
Chicago wheat bounced off a two-month low to rise for the first time in four sessions on Thursday, although a US government forecast of higher world supplies limited gains, while corn and soybeans lost ground.
The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 added 0.1% to $8.07 a bushel, as of 0250 GMT, after dropping to its lowest since Sept. 6 at $8.05-1/4 a bushel.
Corn Cv1 lost 0.1% to $6.63-1/2 a bushel and soybeans Sv1 gave up 0.1% to $14.50-/4 a bushel.
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The US Department of Agriculture (USDA), in its monthly supply-demand report, estimated world wheat stocks at 267.82 million tonnes, up slightly from its October outlook of 267.54 million. Analysts had expected a small drop to 266.52 million.
"The uncertainty over whether or not Russia will extend the export corridor deal beyond 19 Nov deadline may help provide some support," Hightower said in a report.
"In addition, the Rosario Grain Exchange lower their production estimate for Argentina wheat ...," which is supportive of prices.
Top UN officials will meet a senior Russian delegation in Geneva on Friday to discuss extending the Ukraine Black Sea grain export deal and efforts to smooth shipments of Russian food and fertilizers to global markets, the United Nations said.
Argentina's 2022/23 wheat harvest forecast was further cut to 11.8 million tonnes from 13.7 million tonnes previously, the Rosario grains exchange said on Wednesday, warning it could fall further amid a protracted drought that is hammering farmers.
US corn and soybean inventories will be bigger than previously thought as yields of both crops increased from earlier estimates, the USDA said in its report on Wednesday.
The agency pegged the US corn crop at 13.930 billion bushels, based on an average yield of 172.3 bushels per acre. The soybean harvest was seen at 4.346 billion bushels, with a yield of 50.2 bushels per acre.
Last month, the agency estimated corn crop at 13.895 billion bushels, with a yield of 171.9 bushels per acre, and soybean crop at 4.313 billion bushels, with a yield of 49.8 bushels per acre.
The overhang of concerns about Mexican demand for US corn continues after government statements against biotech crops and Chinese demand for US soybeans amid Beijing's Covid-19 restrictions.
Commodity funds were net sellers of CBOT wheat, corn and soymeal futures contracts on Wednesday, and net buyers of soybean and soyoil futures, traders said.
