Content ID

334667

GRAINS-Chicago prices ease ahead of USDA crop forecasts

* Traders await USDA October supply/demand report * U.S. soybean harvest progress ahead of expectations * Large Russian wheat supplies temper war worries (Updates with European trading, changes byline/dateline) By Gus Trompiz and Naveen Thukral PARIS/SINGAPORE, Oct 12 (Reuters) - Chicago corn, wheat and soybean futures edged lower on Wednesday as traders assessed Midwest harvest progress while awaiting widely followed U.S. government crop forecasts. Prices were easing after gains at the start of the week, partly fuelled by fears over escalation in the war between major grain exporters Russia and Ukraine. Grain markets are focusing on the U.S. Department of Agriculture's (USDA) World Agricultural Supply and Demand Estimates report due at 1600 GMT for an update on the U.S. harvest and global supplies that have been strained by adverse weather and the war in Ukraine. Analysts are on average expecting the USDA to trim its U.S. corn yield estimate and nudge up its soybean yield outlook, although traders are also increasingly looking ahead to the next South American crops. "The Northern Hemisphere harvest will not eliminate the global feed supply deficit. Southern Hemisphere weather will be key for relieving prices," Rabobank analysts said in a note. The U.S. corn harvest was 31% complete, as of Sunday, the USDA said in a weekly report issued on Tuesday, behind the average estimate in a Reuters analyst poll of 34%. The soybean harvest was 44% complete, above an average analyst estimate of 41%. The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.05% at $13.75-1/2 a bushel by 1102 GMT. CBOT corn edged down 0.11% to 6.92-1/4 a bushel, while wheat gave up 0.8% to $8.94 a bushel. Wheat and corn had touched a three-month high on Monday, while soybeans reached a 10-day top. Worries over war disruption to Black Sea supplies were tempered by expectations among some traders that a U.N.-backed shipping corridor for Ukrainian grain would be maintained and also by Russia's comments that it could abolish an export quota for the second half of the season. Talk that Russian wheat may be used to fill a large part of a purchase by Algeria, estimated by traders at around 500,000 tonnes, also curbed wheat futures. Prices at 1102 GMT Last Change Pct End Ytd Pct Move 2021 Move CBOT wheat 894.00 -7.00 -0.78 770.75 15.99 CBOT corn 692.25 -0.75 -0.11 593.25 16.69 CBOT soy 1375.50 -0.75 -0.05 1339.25 2.71 Paris wheat 354.25 -1.75 -0.49 276.75 28.00 Paris maize 340.25 -0.50 -0.15 226.00 50.55 Paris rape 632.25 2.00 0.32 754.00 -16.15 WTI crude oil 89.52 0.17 0.19 75.21 19.03 Euro/dlr 0.97 0.00 0.12 1.1368 -14.54 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne (Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Sherry Jacob-Phillips, Uttaresh.V and Shailesh Kuber)

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