Wheat set for second weekly decline on improved world supply outlook

12/10/2021 | 12:19am

* U.S. forecast of higher wheat supplies weighs on prices

* Chicago soybean futures gain more ground, corn declines

SINGAPORE, Dec 10 (Reuters) - Chicago wheat futures lost more ground on Friday, poised for a second straight weekly decline, after the U.S. Department of Agriculture (USDA) forecast larger-than-expected global production, fuelling the prospect of improved supply worldwide.

Corn edged lower after three straight sessions of gains, while soybeans firmed for a third session in a row.

"Wheat futures have suffered losses but if you look at the physical prices in key exporting countries, there is not much change," said one Singapore-based trader.

The most-active wheat contract on the Chicago Board of Trade has lost more than 4% this week. The market was down 0.8% at $7.70-3/4 a bushel, as of 0505 GMT.

Corn has gained nearly 1% this week, while soybeans have added 0.1%.

The USDA raised its global wheat ending stocks view by a greater-than-anticipated 2.38 million tonnes on a stronger production outlook for Australia, Canada and Russia.

This could ease concerns over global food inflation as prices hover at a 10-year high. The U.N. food agency highlighted wheat in its latest price index due to heavy rains in Australia and potential changes to export measures in Russia.

The USDA also increased global corn ending stocks amid larger crops in Ukraine and the European Union and a smaller crop in China, and trimmed world soybean supplies.

Commodity funds were net buyers of CBOT corn and soymeal futures contracts on Thursday and net sellers of wheat, soybeans and soyoil, according to an average of estimates from traders.

Trade estimates for fund activity on soybeans ranged from net sales of 5,000 contracts to net purchases of 2,000 contracts. For corn, funds were estimated to be net even on the day to net buyers of 5,000 contracts, traders said. (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips and Subhranshu Sahu)

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