*
Wheat up for 2nd day as prices continue to recover from
2-yr low
*
Renewed Russia-Ukraine tensions cast doubts on Black Sea
deal
(Adds quote in paragraph 3, updates prices)
By Naveen Thukral
SINGAPORE, May 4 (Reuters) - Chicago wheat futures
climbed to a one-week high on Thursday, continuing to recover
from multi-month lows, after concerns over renewed tensions
between Russia and Ukraine fuelled doubts on the future of a
Black Sea export corridor.
Soybeans inched lower and corn was almost flat, with both
markets facing pressure from U.S. planting.
"The wheat market has reversed the downward trend as there
are fresh tensions between Russia and Ukraine which are putting
the Black Sea grain deal in doubt," said one Singapore-based
trader.
The most-active wheat contract on the Chicago Board of Trade
(CBOT) was up 0.4% at $6.42-1/2 a bushel, as of 0401 GMT,
after climbing earlier in the session to its highest since April
26. The market hit its lowest since April 2021 at $6.04 a bushel
on Wednesday.
Corn was unchanged at $5.88-1/2 a bushel and soybeans lost 0.1% to $14.16 a bushel.
Russia accused Ukraine on Wednesday of attacking the Kremlin
with drones overnight in a failed attempt to kill President
Vladimir Putin.
Later, Ukraine President Volodymyr Zelenskiy said Russia did
not appear to be interested in extending the Black Sea grain
deal, but that Kyiv was focused on looking for partners to
fulfil the deal and was not looking for Russian interest.
However, Russia said on Wednesday it will keep talking to
the United Nations about the future of the deal that allows the
safe Black Sea export of Ukraine grain, but would not do
anything to harm its own interests.
Egypt's state grains buyer, the General Authority for Supply
Commodities, bought 655,000 tonnes of wheat in an international
tender on Tuesday with cheap Russian wheat dominating the
business, traders said on Wednesday.
The total is believed to involve an estimated 535,000 tonnes
sourced from Russia and 120,000 tonnes from Romania.
French consultancy Agritel raised its forecast for this
year's Ukrainian wheat crop to 16.34 million tonnes, from 15.04
million tonnes pegged in November, to take account of a
higher-than-expected area to be harvested, it said on Wednesday.
Commodity funds were net buyers of CBOT corn, soybeans,
wheat and soyoil futures contracts on Wednesday, traders said.
Funds were net sellers of soymeal. (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)
