Wheat drops to lowest since early October on bumper harvest expectations

SINGAPORE: Chicago wheat futures slid for a third consecutive session on Thursday to their lowest in more than eight months as bumper harvest of a Northern Hemisphere crop weighed on the market.

Corn edged higher, although gains were curbed by forecasts of crop-friendly weather across the US Midwest, while soybeans lost ground.

"Seasonal pressure is building in the US as harvesting gathers pace," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.

"US pricing appears very competitive but until we see an uptick in US exports, the seasonal pressure will dominate."

The market is awaiting results of a tender issued by Egypt, the world's biggest buyer, seeking an unspecified amount of wheat from global suppliers for shipment from July 25-Aug 5.

The most-active wheat contract on the Chicago Board Of Trade was down 0.4pc at $4.87 a bushel by 0305 GMT, after hitting its lowest since early October.

Soybeans were down 0.1pc at $8.70-1/2 a bushel and corn added 0.2pc to $3.31 a bushel.

The Ukrainian government has raised its grain crop forecast for this year to 68 million tonnes from 65-68 million tonnes, Economy Minister Ihor Petrashko told reporters on Tuesday.

Russia's grain exports will not be subjected to any quotas from July to December, the agriculture ministry said on Tuesday, citing its initial plan.

US Midwest weather forecasts for rain and easing temperatures in the week ahead tempered concern about stressed corn after a recent hot, dry spell.

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