Wheat prices fall for 2nd day as world inventories weigh, corn down

SINGAPORE: Chicago wheat futures lost ground for a second session on Tuesday, with abundant global supply pressuring prices.

Corn slid after rising for two sessions, while soybean prices were marginally lower for a second day.

The Chicago Board of Trade most-active wheat contract had fallen 0.2 percent to $4.21 a bushel by 0208 GMT, after dropping 1.2 percent on Monday. Corn gave up 0.4 percent to $3.43-3/4 a bushel and soybeans slid 0.1 percent to $9.89 a bushel.

Wheat exporters in the United States and parts of Europe are struggling to win business as Black Sea exporters, led by Russia with a record crop, dominate the global market.

There could be further pressure on prices as Ukrainian winter grain crops are in a better condition than at the same date last year thanks to favourable weather.

The US Department of Agriculture (USDA) said 259,264 tonnes of US wheat were inspected in the week ended Nov. 16, near the low-end of analyst estimates for 250,000 to 450,000 tonnes.

"The publication of US export inspections data did not help the mood," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. "US exports are, by this measure, falling further behind target."

A tender issued by Iraq, which is seeking 50,000 tonnes of wheat from the United States, Australia or Canada, could bring fresh US sales as there will not be competition from Russia and Ukraine.

The USDA in a weekly report said the soybean harvest was 96 percent complete and the corn harvest was 90 percent done, both 1 percentage point below analyst estimates.

Losses in soybeans were capped by dry weather in Argentina, which could hurt yields in the top soymeal and soyoil exporter.

"Drier than average conditions to dominate Argentina's Pampas through at least end of month; early corn and soybean area and yield could start to be negatively affected," Thomson Reuters Agriculture Research analysts said in a note.

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