Wheat rises on concern about Ukraine's safe shipping channel
By Michael Hogan
HAMBURG, Oct 17 (Reuters) - Chicago wheat futures rose on Monday, on concern that intensified fighting between Russia and Ukraine could threaten the extension of the safe shipping channel for Ukrainian grain exports.
Corn and soybeans were slightly weaker as dry weather this week would help U.S. harvests, while a stronger dollar provided headwinds for U.S. exports.
Chicago Board of Trade most-active wheat rose 1.7% to $8.74-1/2 a bushel at 1101 GMT following Friday's losses.
Corn fell 0.1% to $6.88-3/4 a bushel, soybeans fell 0.1% to $13.81-3/4 a bushel.
Dealers were awaiting news about the extension of Ukraine's safe shipping channel, as fighting in the country flared up.
Russian drones hit tanks with sunflower oil at a terminal in the Ukrainian port city of Mykolaiv on Sunday.
"Wheat is rising today largely on continued geopolitical risks and concern that the safe shipping channel for Ukraine's grain exports may not be extended," said Matt Ammermann, StoneX commodity risk manager. "Fighting in Ukraine has intensified and there is a lack of news about progress in talks to prolong the shipping channel which is creating worry."
"Concern about weather damage to wheat crops in Australia and Argentina is also supportive."
Prices had rallied last week on reports Moscow could reject a renewal of the corridor. Hopes of progress on Friday then caused wheat to fall.
Widespread rain threatens damage to Australia's crop, while Argentina's crop is suffering from drought.
"Soybeans and corn are seeing downward pressure from belief the U.S. harvest is making good progress," Ammermann said. "The focus in soybean and corn markets is starting to move to the demand side, with the strong dollar hindering U.S. exports and general international demand for U.S. supplies currently looking weak."
"The crop outlooks in South America are generally positive which could also reduce demand for U.S. supplies."
(Reporting by Michael Hogan in Hamburg, additional reporting by Naveen Thukral in Singapore; Editing by Shailesh Kuber)
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