Wheat edges up after 3 days of decline, gains capped by ample supplies

SINGAPORE: Chicago wheat ticked higher on Thursday as bargain buying after three sessions of decline underpinned prices, although gains were checked by stiff competition in the global export market.

Corn and soybeans firmed after closing lower in the previous session.

The Chicago Board of Trade most-active wheat contract gained 0.1 percent to $4.30-1/4 a bushel by 0227 GMT, having closed down 1 percent on Wednesday when prices hit a low of $4.29 a bushel - the weakest since Oct. 12.

Corn rose 0.3 percent to $3.49-1/2 a bushel, having closed down 0.4 percent in the previous session, while soybeans added 0.1 percent to $9.85-1/4 a bushel, having closed marginally lower on Wednesday.

Wheat is under pressure as US supplies struggle to attract international demand amid abundant supplies from Russia and Ukraine.

"Prices are now back near recent, and season, lows," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia, referring to US wheat prices.

"Buyers have emerged at these levels several times since late August."

Reflecting the loss of market share for US wheat in Egypt, the world's top importer, US Wheat Associates, a trade group that promotes US exports, is closing its office in Cairo after about 40 years, a spokesman said on Tuesday.

In China's soymeal market, investors have piled on bullish options trades this month, betting on higher prices as farmers in one of the world's largest livestock sectors fatten their herds ahead of peak demand season in the new year.

But the country's stocks of soybean oil are at record levels after huge imports of beans this year, keeping a lid on prices.

China buys more than 60 percent of soybeans traded worldwide.

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