Wheat stays firm on world supply doubts; corn, soy in pre-USDA lull

PARIS/SINGAPORE: Chicago wheat futures rose for a second session on Thursday as hot weather in Europe and lower-than-expected planting in Canada raised supply concerns.

Corn and soybeans were little changed ahead of Friday's keenly awaited a US government planting update that will gauge the impact of torrential rain in the Midwest.

The most-active wheat contract on the Chicago Board Of Trade was up 1.4% at $5.54-1/4 a bushel, as of 1155 GMT, adding to a similar gain on Wednesday.

Canada's statistics agency pegged the wheat plantings at 24.6 million acres, down slightly from last year's 24.7 million and well below the average trade expectation of 25.7 million acres.

In Europe, a heatwave this week that has seen temperatures reach 40 degrees Celsius (104°F) in parts of France and Germany has added to doubts about harvest yields following recent hot, dry weather in top wheat exporter Russia.

"The market is not getting too worked up but there is some uncertainty about crops in parts of the world," a European trader said of wheat.

On Paris-based Euronext, front-month September wheat was up 0.8% at 184.25 euros ($209.62) a tonne but held below a three-week high hit on Tuesday.

Analysts and traders were anticipating a negative impact on harvest yields, although views differed in the extent of possible losses.

"The effect of this heat wave is difficult to measure for the moment especially since the initial (yield) potential was important in many regions," consultancy Agritel said of European crops.

CBOT soybeans edged up 0.2% to $8.96 a bushel and corn was up 0.1% at $4.50 a bushel.

After falling on Wednesday amid improving weather in the US Midwest, markets found technical support on price charts while awaiting Friday's US Department of Agriculture (USDA) acreage report.

The report is attracting particular attention after a spring deluge that disrupted corn and soybean planting.

Traders were also waiting for weekly US export sales data later on Thursday for a fresh indication of demand.