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335974

GRAINS-Wheat rises from 2-month low; U.S. forecast of higher supply caps gain

SINGAPORE, Nov 10 (Reuters) - Chicago wheat rose for the first time in four sessions on Thursday, recovering from its lowest in two months, although a U.S. government forecast of higher world supplies limited gains.

Corn and soybeans edged higher.

FUNDAMENTALS

* The most-active wheat contract on the Chicago Board of Trade (CBOT) added 0.4% to $8.09-3/4 a bushel, as of 0113 GMT, after dropping to its lowest since Sept. 6 at $8.05-1/4 a bushel on Wednesday.

* Corn gained 0.2% at $6.65-3/4 a bushel and soybeans rose 0.3% to $14.56 a bushel.

* The U.S. Department of Agriculture (USDA), in its monthly supply-demand report estimated world wheat stocks at 267.82 million tonnes, up slightly from its October outlook of 267.54 million. Analysts on average had been expecting a small decline to 266.52 million.

* Hopes for an extension of a Black Sea export deal is likely to keep a lid on wheat and corn prices.

* Top U.N. officials will meet a senior Russian delegation in Geneva on Friday to discuss extending the Ukraine Black Sea grain export deal and efforts to smooth shipments of Russian food and fertilizers to global markets, the United Nations said.

* However, a further reduction in estimates for Argentina's wheat crop are supportive for prices. Argentina's 2022/23 wheat harvest forecast has been cut to 11.8 million tonnes, down from 13.7 million tonnes previously, the Rosario grains exchange said on Wednesday, warning it could fall further amid a protracted drought that is hammering farmers.

* U.S. corn and soybean inventories will be bigger than previously thought as yields of both crops increased from earlier estimates, the USDA said on Wednesday.

* The agency, in its World Agricultural Supply and Demand Estimates report, pegged the U.S. corn crop at 13.930 billion bushels, based on an average yield of 172.3 bushels per acre. The soybean harvest was seen at 4.346 billion bushels, with a yield of 50.2 bushels per acre.

* Last month, the agency estimated the corn crop at 13.895 billion bushels, with a yield of 171.9 bushels per acre, and the soybean crop at 4.313 billion bushels, with a yield of 49.8 bushels per acre.

* Concerns about Mexican demand for U.S. corn after government statements against biotech crops and Chinese demand for U.S. soybeans amid Beijing's COVID-19 restrictions continue to hang over the market.

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

MARKET NEWS

* U.S. stocks fell sharply and the dollar rose on Wednesday as investors awaited both the results of the U.S. midterm elections and key data on consumer prices that could impact the Federal Reserve's policy on interest rates.

DATA/EVENTS (GMT) 1330 US CPI MM, SA Oct 1330 US CPI YY, NSA Oct 1330 US Initial Jobless Clm Weekly (Reporting by Naveen Thukral; Editing by Rashmi Aich)

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