Wheat set for second weekly gain on global supply concerns

PARIS/SINGAPORE: Chicago wheat futures edged higher on Friday, remaining on course for a second weekly gain as harvest setbacks in North America, Russia and western Europe raised concern over tightening export supplies.

Corn was little changed while soybeans ticked up as market participants assessed crop weather forecasts showing both rain relief and hotter weather in the US Midwest in the coming days.

Attention in grain markets was shifting toward next week's US Department of Agriculture (USDA) monthly supply and demand outlook.

Investors were also awaiting monthly US jobs data.

Wheat rebounds on supply concerns, soybeans firm

The most active wheat contract on the Chicago Board of Trade was up 0.7% at $7.18 a bushel by 1208 GMT.

"The supply of wheat is becoming tighter and tighter," Commerzbank analysts said in a note.

US and Canadian farmers are bracing for a sharply smaller spring wheat harvest because of the driest conditions in decades while analysts have reduced Russian harvest estimates because of disappointing yields and an official revision to the planted area.

Heavy summer rain, meanwhile, has delayed harvesting in parts of Europe and was causing difficulties with milling quality in France.

"Harvesting is making only sluggish progress in many places," Commerzbank said.

Soybeans climb nearly 1% on USDA crop condition report

CBOT corn was up 0.1% at $5.53-3/4 while soybeans added 0.7% to $13.37-3/4.

Increased weekly corn exports and a flash daily export sale of soybeans, both reported on Thursday, lent some support to futures, though there were broader concerns about the impact on demand from the spread of the Delta coronavirus variant.

The US corn market remained underpinned by dwindling prospects for the second corn crop in rival exporter Brazil.