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334366

GRAINS-Chicago corn, soybeans fall on U.S. harvest; wheat firms

SINGAPORE, Oct 5 (Reuters) - Chicago corn and soybean futures lost ground on Wednesday, pressured by freshly harvested U.S. supplies entering the market.

Wheat rose for the first time in three sessions on concerns over supplies from the war-torn Black Sea region.

FUNDAMENTALS

* The most-active corn contract on the Chicago Board of Trade (CBOT) slid 0.1% to $6.82-1/2 a bushel, as of 0022 GMT, and soybeans gave up 0.1% to $13.81-3/4 a bushel.

* Wheat added 0.3% to $9.05-3/4 a bushel.

* Seasonal pressure from an expanding U.S. harvest weighed on soybean and corn prices, while traders awaited more information about the size of U.S. crops.

* Commodity brokerage StoneX raised its estimate of the average U.S. corn yield to 173.9 bushels per acre (bpa), from 173.2 previously, but lowered its corn production estimate to 14.056 billion bushels, from 14.168 billion last month.

* For soybeans, StoneX lowered its forecast of the U.S. 2022 yield to 51.3 bpa from its Sept. 1 figure of 51.8. The firm forecast U.S. soybean production at 4.442 billion bushels, down from 4.515 billion previously.

* Market participants continue to monitor tensions between Russia and Ukraine, which are among the world's leading grain exporters.

* Ukrainian President Volodymyr Zelenskiy said that his country's military had made major, rapid advances against Russian forces and freed dozens of towns in the south and east over the last week.

* The pace of sowing winter wheat in Ukraine for the 2023 harvest is three times lower than last year's figures, data provided by the agriculture ministry showed on Tuesday.

* Farms had sown 1.1 million hectares of winter wheat as of Oct. 3, or 27% of the expected area, compared with 3.1 million hectares sown at the same date in 2021, the data showed.

* The ministry gave no reason for the decrease while local officials and analysts say rains across most of the country and a lack of funds are the main reasons for the delay.

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

MARKET NEWS

* U.S. stocks and oil on Tuesday posted strong gains for a second straight day while U.S. Treasury yields slid as investors wondered if global efforts by central banks to fight inflation may ease in the future.

DATA/EVENTS (GMT) 0750 France S&P Global Serv, Comp PMIs Sept 0755 Germany S&P Global Services PMI Sept 0755 Germany S&P Global Comp Final PMI Sept 0800 EU S&P Global Serv, Comp Final PMIs Sept 0830 UK Composite PMI Final Sept 0830 UK Reserve Assets Total Sept 1230 US International Trade Aug 1345 US S&P Global Serv, Comp Final PMIs Sept 1400 US ISM N-Mfg PMI Sept (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)

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