Wheat firm near 6-year top as weather worries persist

PARIS/SYDNEY: Chicago wheat rose on Friday as traders worried about persisting effects of drought in major production belts worldwide and importers continued to grab available supply.

Corn edged higher to hold near Thursday's 14-month high as strong export demand and doubts over harvest prospects in Ukraine and South America underpinned the market.

Soybeans were little changed after rallying to a four-year peak in the previous session, as investors assessed improving rainfall in Brazil that could boost the planting campaign.

The most active wheat futures on the Chicago Board of Trade were up 0.9% at $6.28-1/2 a bushel by 1046 GMT.

The contract had fallen earlier to a one-week low as it eased from Tuesday's near six-year high, before turning upwards to trade back close to that peak.

"The weather remains a really important factor for wheat," Nathan Cordier of consultancy Agritel said.

"You've got a lot of rain in Australia, Argentina has suffered from dryness and frost, conditions aren't good in US states like Kansas, while in Russia there is still a lot of uncertainty."

The Buenos Aires Grains Exchange on Thursday cut again its forecast of the Argentine wheat harvest, citing the impact of drought despite the recent return of rain.

Fellow southern hemisphere exporter Australia is set for a rebound in production this year, but rain in the southeast has raised concern about crop quality.

In Russia, virtually no rain was expected in the week ahead in dry southern belts, although some forecasts projected showers in early November.

Egypt is holding a tender on Friday, following purchases this week by Algeria, Tunisia and Turkey.

CBOT soybeans inched up a quarter of a cent to $10.74 a bushel, after hitting on Thursday a more than four-year high of $10.85-1/4.

CBOT corn was up 0.4% at 4.17-3/4 a bushel, near Thursday's peak of $4.19 that marked a highest since August 2019.

US Department of Agriculture weekly export data on Thursday confirmed strong demand for corn and soybeans, including large sales to China.