SINGAPORE: Chicago wheat futures rose on Friday, trading close to a nine-year peak scaled earlier this week and on track for a second straight weekly gain, as tightening global supplies underpinned the market.
Soybeans advanced and were poised for a second consecutive week of gains.
"Prices in Europe and the Black Sea were reported higher and at season high levels in some cases," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia, referring to wheat prices in key exporting countries.
"The action still signals consolidation at higher price levels established over the past week or so."
The most-active wheat contract on the Chicago Board of Trade (CBOT) rose 0.4% to $8.34-1/4 a bushel by 0341 GMT. Prices hit their highest since December 2012 on Wednesday.
Soybeans have added 2.5% this week, while corn has lost 0.5%.
The International Grains Council on Thursday cut its forecast for 2021/22 global wheat production, partly driven by a diminished outlook for the crop in Iran.
In its monthly update, the inter-governmental body reduced its 2021/22 world wheat crop outlook by 4 million tonnes to 777 million tonnes.
Heavy rains are threatening damage to Australia's harvest, flooding has disrupted export routes in Canada and dry conditions are raising early doubts about production in the United States and the Black Sea region.
Consultancy Strategie Grains sharply cut its demand forecast for European Union wheat in 2021/22 as high prices were seen eroding exports and leading industrial processors to switch to maize.
Commodity funds were net sellers of CBOT soybean, corn, wheat and soymeal futures contracts on Thursday, traders said. They were net even in soyoil.
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