CANBERRA, Oct 31 (Reuters) - Chicago wheat futures fell on Tuesday but were still set for their first monthly gain since July, supported by falling exports from Ukraine and concern that dry conditions have reduced harvests in the southern hemisphere.
Soybeans and corn were little changed. Soy was on track for a monthly gain while corn was flat over the month.
FUNDAMENTALS
* The most-active wheat contract on the Chicago Board of Trade (CBOT) was 0.4% lower at $5.63-3/4 a bushel by 0041 GMT but up 4.2% for the month.
* CBOT soybeans was down 0.1% at $13.06-1/2 a bushel but 2.4% higher this month. Corn rose 0.1% to $4.78-1/2 a bushel.
* Ukraine's grain exports in October have almost halved year on year to 2.15 million metric tons from 4.22 million tons, agriculture ministry data showed on Monday.
* However, a new Black Sea export corridor has improved prospects for shipments, leading to a more than 50% increase in the number of rail wagons heading to ports in Odesa region, a railway official said.
* The wheat market has been dominated in recent months by huge exports of cheap Russian grain pushing down prices.
* As Russia's harvest nears an end, consultants Sovecon estimated that it will export 4.4 million tons of wheat in October, down from 4.5 million tons a year ago.
* Muted demand means the price of 12.5%-protein Russian wheat for FOB delivery late November-early December was unchanged at $224 a metric ton last week, the IKAR agriculture consultancy said.
* Focus is turning to southern hemisphere exporters that reap later. Rains have recently fallen in Argentina and Australia but dry conditions have depressed yields in both countries.
* In the United States, the Department of Agriculture (USDA)rated 47% of the U.S. winter wheat crop in good to excellent condition, the highest for this time of year since 2020.
* Improved prospects in the world's No. 4 wheat exporter could ease concerns about tightening global grain supplies, but U.S. winter wheat won't be harvested until mid-2024.
* The USDA also said the U.S. soybean harvest was 85% complete and the corn harvest was 71% complete, both ahead of their five-year averages.
* Meanwhile, Brazil's 2023/24 soybean planting reached 40% of the expected area by last Thursday, consultants AgRural said, adding that sowing lags levels last year, when 46% of the areas had been planted by the same time.
* Commodity funds were net sellers of Chicago soybean, soymeal, wheat and corn futures contracts on Monday, traders said.
MARKETS NEWS
Global stock indexes advanced on Monday, with U.S. stocks rallying more than 1% after recent sharp declines, while the yen rose to a two-week high against the dollar after a report that the Bank of Japan is considering tweaking its yield curve control policy.
(Reporting by Peter Hobson; Editing by Rashmi Aich)
