GRAINS-Soybeans, corn fall as U.S. Midwest rains improve crop prospects
* U.S. rains in critical stage of development boost corn, soybeans
* More grain exports from war-torn Ukraine add pressure on wheat (Recasts with change in market direction, adds quote in paragraph 3-4, updates prices)
By Naveen Thukral
SINGAPORE, Aug 18 (Reuters) - Chicago soybean and corn futures lost ground on Thursday, giving up some of last session's gains, as forecasts of rains in parched areas of the U.S. grain belt weighed on the market.
The wheat market faced pressure, falling for a second session, with expectations of higher supplies from Ukraine easing world supply concerns.
"The more benign weather in the western U.S. Midwest has tempered the market's rally reflex for now," said Tobin Gorey, director of agricultural strategy at the Commonwealth Bank of Australia.
"Weather forecasters have another useful rain event penned in those same regions about a week out. The evolution of forecast for that event will likely remain an influence into next week."
The most-active soybean contract on the Chicago Board of Trade (CBOT) lost 0.5% to $13.82-3/4 a bushel, as of 0340 GMT and corn gave up 0.2% to $6.10-3/4 a bushel. Wheat fell 0.3% to $7.78 a bushel.
Forecasts for rain this week in dry western parts of the U.S. Midwest are adding pressure on soybean prices, as the crop finishes filling out through the end of August. U.S. corn crop is also likely to benefit from rains.
The wheat market is facing headwinds on higher Ukrainian supplies.
Ukraine expects five ships to arrive at its Chornomorsk Black Sea port on Wednesday for loading with more than 70,000 tonnes of agricultural products, the largest convoy so far under a U.N.-brokered grain export deal.
The Ukrainian sea ports authority said in a statement that the new cargoes would include wheat, corn and sunseed oil.
Gains in wheat prices have also been curbed by stronger-than-expected harvests in Russia and India, despite uncertainties over exports from both countries.
India raised its wheat production estimate on Wednesday, even as other forecasters and traders were scaling down output numbers because of a heatwave.
The world's second-biggest grains producer harvested 106.84 million tonnes of wheat in 2022, slightly higher than the previous estimate of 106.41 million tonnes, the government said in its latest estimate released by the farm ministry.
Consultancy Sovecon raised its forecast for Russia's 2022 wheat crop to 94.7 million tonnes from 90.9 million on Tuesday.
Commodity funds were net sellers of CBOT wheat and soyoil futures contracts on Wednesday and new buyers of CBOT soybeans, corn and soymeal, traders said. (Reporting by Naveen Thukral; Editing by Rashmi Aich)
© Copyright Thomson Reuters 2022. Click For Restrictions - http://about.reuters.com/fulllegal.asp