Content ID

333669

GRAINS-Wheat falls from two-month high as U.S. averts rail shutdown

* Profit-taking pressures wheat futures

* U.S. railroads, unions reach tentative labor deal

* USDA issues weekly export sales data (Adds latest prices, adds byline/dateline)

By Tom Polansek

CHICAGO, Sept 15 (Reuters) - U.S. grain and soybean futures weakened on Thursday, with profit-taking dragging Chicago wheat prices down from a two-month high, traders said.

A tentative agreement to avert a U.S. rail shutdown added pressure on wheat futures, said Matt Wiegand, a risk management consultant and commodity broker at FuturesOne.

Before the deal, some traders thought a shutdown would increase demand for wheat to be used as livestock feed in the U.S. Plains because railroads would not be been able to transport corn to the region for feed, Wiegand said.

"The big thing is wheat today, with the rail strike being averted," he said.

Most-active Chicago Board of Trade wheat futures were down 27-1/4 cents at $8.45 a bushel by 12:50 p.m. CDT (1750 GMT). The market retreated after hitting its highest level since July 11 at $8.84-3/4 earlier in the session.

CBOT corn was 4-1/4 cents lower at $6.78 a bushel, while soybeans slipped 2-1/2 cents to $14.52-1/2 a bushel.

Accelerating U.S. corn and soybean harvests hung over the markets, traders said.

The U.S. Department of Agriculture issued four weeks' worth of weekly export sales data, after suspending reports due to problems with a new reporting system.

Exporters sold a net 583,100 tonnes of U.S. corn in the week ended Sept. 8 for shipment in the 2022/23 marketing year, in line with trade estimates, the USDA said.

The agency said exporters sold a net 843,000 tonnes of U.S. soybeans in the week ended Sept. 8 for shipment in the 2022/23 marketing year and 30,000 tonnes for 2023/24, also in line with trade estimates.

Separately, the U.S. soybean crush dropped by nearly 3% in August and fell short of the average trade forecast, while soyoil stocks at the end of the month hit a 14-month low, according to National Oilseed Processors Association (NOPA) data.

(Reporting by Tom Polansek in Chicago, Enrico Dela Cruz in Manila and Sybille de La Hamaide in Paris; Editing by Emelia Sithole-Matarise and Elaine Hardcastle)

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