SINGAPORE/PARIS, June 21 (Reuters) - Chicago wheat
futures were heading for a fourth consecutive weekly loss on
Friday as northern hemisphere harvests brought new supply into
the market and the production outlook improved.
Corn and soybean futures steadied after dropping sharply on
Thursday when forecasts for rain in U.S. cropping zones eased
fears that a heat wave could stress crops.
September soft red winter wheat on the Chicago Board of
Trade (CBOT) was up 0.5% at $5.89 a bushel by 1045 GMT
but down more than 6% from last Friday's close.
CBOT July soybeans rose 0.2% to $11.18-1/2 a bushel
but were down 5.2% for the week after closing at their lowest in
two months on Thursday.
July corn was 0.4% up at $4.41-1/2 a bushel and on
course for a 1.9% weekly loss.
Falling Russian harvest estimates pushed wheat prices to a
10-month high of $7.20 last month, but the supply outlook in
Russia and other countries including Romania and Australia has
improved, said Stefan Vogel, an analyst at Rabobank in Sydney.
"There are a lot of places where the volumes are maybe
slightly bigger than the market expected a few weeks ago," he
said.
"As soon as the combines are rolling and volumes are making
their way into the supply chain, that's usually a time that
prices will come under pressure."
Prices are also being pressured by U.S. wheat supplies
coming on the market as the harvest progresses unusually
quickly.
"Nevertheless, the extent of the price decline seems
exaggerated to us, which is why we expect a stabilisation and
subsequent recovery," Commerzbank said.
Wheat stocks in the most important exporting countries are
likely to fall further in the coming 2024/25 season, it said,
citing the U.S. Department of Agriculture's forecast.
"The improved crop prospects and rising inventories in the
U.S. will do little to change this," it added.
In France, the condition of the soft wheat crop remained
unchanged at a four-year low, data from farm office
FranceAgriMer showed on Friday, though wet weather this week
could add stress to crops after a damp growing season.
Prices at 1045 GMT
Last Change Pct
Move
CBOT wheat 589.00 3.00 0.51
CBOT corn 441.50 1.75 0.40
CBOT soy 1118.50 1.75 0.16
Paris wheat 228.25 1.50 0.66
Paris maize 208.00 0.00 0.00
Paris rapeseed 459.50 -4.00 -0.86
WTI crude oil 81.28 -0.01 -0.01
Euro/dlr 1.07 0.00 -0.20
Most active contracts - Wheat, corn and soy US
cents/bushel, Paris futures in euros per tonne
(Reporting by Cassandra Yap and Peter Hobson in Singapore and
Sybille de La Hamaide in Paris
Editing by Eileen Soreng, Janane Venkatraman and David Goodman
)