Wheat Falls For 2nd Session On U.S. Weather Outlook; Soybeans, Corn Firm – Reuters

SINGAPORE, Dec 9 (Reuters) – Chicago wheat futures slid for a second straight session on Thursday as forecasts for mild temperatures and some rain in key U.S. growing regions fuelled expectations of a bumper harvest.

Soybeans rose for a second consecutive session while corn edged higher for a third day in a row, although forecasts of near-record production in Brazil and Argentina limited gains.

Easing concerns about the Omicron coronavirus variant added pressure on prices.

“U.S. wheat prices are at now at new lows for the period since the Omicron variant emerged,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.

“The lack of a bounce in wheat prices now that fears about Omicron are fading is perhaps not so odd. Omicron’s emergence was more a catalyst for some investors to exit several markets simultaneously, wheat included.”

The most-active wheat contract on the Chicago Board of Trade gave up 0.4% to $7.91-3/4 a bushel, as of 0322 GMT, after closing 1.7% lower on Wednesday.

Soybeans gained 0.2% to $12.64 a bushel and corn climbed 0.2% to $5.88-1/4 a bushel.

U.S. weather models call for mild temperatures, aiding wheat crops ahead of their dormancy period.

Private exporters reported sales of 130,000 tonnes of soybeans to China, the fifth trading day in a row after a flash sale of the oilseed was announced, and 1.844 million tonnes of corn to Mexico.

Expectations for a bumper crop of corn and soybeans in South America kept the gains in check. Forecasts have pointed to improved growing weather in recent days, but parts of southern Brazil remained dry.

Brazil’s grain crop is expected to total a record of 289 million tonnes in 2022, up 14% from a year earlier, farm group CNA said on Wednesday, adding that the country’s grain and oilseed output should reach 300 million tonnes in “another year or two.”

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

Reporting by Naveen Thukral; Editing by Subhranshu Sahu

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