Wheat eases from 7-wk high, market eyes USDA report

SINGAPORE: Chicago wheat futures edged lower on Thursday as the market took a breather after climbing to its highest in more than seven weeks in the previous session on short-covering and expectations of lower US production.

Corn and soybeans eased in Asian trading, giving up gains in positioning ahead of a US crop report due on Friday.

The Chicago Board Of Trade most-active wheat contract was down 0.2 percent at $4.60-3/4 a bushel by 0230 GMT, having closed up 1.7 percent on Wednesday when prices hit a high of $4.62-3/4 a bushel - the highest since Aug. 8.

Soybeans were down 0.5 percent at $9.61 a bushel, having firmed 0.2 percent on Wednesday, and corn gave up 0.3 percent to $3.53 a bushel, having closed up 0.5 percent in the previous session.

"Investors still have hefty short position (in wheat) that probably has a fading rationale that offers an immediate source of buying," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.

"Sellers can afford to be more patient. Any slowing in exports due to higher prices would not be broadly apparent to the market for at least another fortnight."

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

The US Department of Agriculture is scheduled to issue the small grains report at 1600 GMT on Friday and analysts expect the government to lower its estimate of US 2017 wheat production.

Analysts expect the USDA to report US corn stocks as of Sept. 1 at 2.353 billion bushels, which would be the largest since 1988 if realized.

Soybeans are under pressure as a spell of unseasonably hot weather over the last week likely helped advance crop maturity, easing fears of harvest delays.

Argentine farmers are expected to harvest 54 million tonnes of soy in the 2017/18 season, down from 57.5 million tonnes in 2016/17, as growers expand wheat and corn sowing, the Buenos Aires Grains Exchange said on Wednesday.

The soy planting area in the 2017/18 season is seen at 18.1 million hectares, down from 19.2 million in 2016/17, the exchange said in a presentation to grains industry leaders.