(Updates throughout with closing prices, weekly USDA crop
progress)
By Julie Ingwersen
CHICAGO, May 15 (Reuters) - U.S. wheat futures rose
about 4% on Monday, supported by a lower-than-expected official
forecast of U.S. supply next season and doubts over the renewal
of a deal on the shipping corridor from Ukraine before a
deadline this week.
Corn and soybean futures also advanced, supported by
strength in wheat and crude oil, a softer dollar and worries
about the size of Argentina's drought-hit crops.
Chicago Board of Trade (CBOT) July wheat settled up
25-3/4 cents at $6.60-3/4 per bushel. The K.C. July wheat contract, representing the wheat class grown in the drought-hit
U.S. Plains, ended up 21-1/4 cents at $8.98-1/4 a bushel after
rising to $9.12-1/4, its highest in nearly six months.
CBOT July corn settled up 6-1/4 cents at $5.92-1/2 a
bushel and July soybeans finished up 10-3/4 cents at
$14.00-3/4 a bushel.
Wheat climbed on fears of tightening supplies after the U.S.
Department of Agriculture's first official forecast of U.S.
2023-24 all-wheat production, released Friday at 1.659 billion
bushels, fell below most analyst expectations. The harvest of
hard red winter wheat in the drought-stricken Plains would be
the smallest since 1957.
The USDA's report "was somewhat bullish for wheat prices
given the large drop expected in U.S. ending stocks for
2023/24," ING Economics said in a note.
"However, developments related to the Black Sea grain deal
will also be crucial for price direction."
The U.N.'s aid chief said efforts will continue in coming
days to extend the deal allowing the safe Black Sea export of
Ukraine grain, a pact Russia has threatened to quit on May 18
over obstacles to its grain and fertilizer exports.
Gains in corn and soybean futures were muted after the USDA
on Friday projected hefty year-on-year increases in corn and
soybean supplies due to forecasts for record U.S. harvests of
both crops. However, crop prospects will depend on Midwest
weather in the coming months.
After Monday's market close, the USDA
said
the U.S. corn crop was 65% planted and soybean planting was
49% complete, both slightly behind trade
expectations
but still ahead of their respective five-year averages.
(Additional reporting by Gus Trompiz in Paris and Naveen
Thukral in Singapore; Editing by Emelia Sithole-Matarise and
David Gregorio)
Messaging: julie.ingwersen.thomsonreuters.com@reuters.net))
