*
U.S. forecast of lower 2023/24 production buoys wheat
prices
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Corn, soybeans fall on expectations of record U.S. harvest
(Adds quote in paragraph 3, updates prices)
By Naveen Thukral
SINGAPORE, May 16 (Reuters) - Chicago wheat gained more
ground on Tuesday, climbing to its highest in a week as
expectations of lower U.S. supplies in the next season and
doubts over the renewal of a Black Sea export deal underpinned
prices.
Corn and soybeans eased amid forecasts of record U.S.
production.
"The USDA (U.S. Department of Agriculture) issued winter
wheat harvested area, and after breaking down the area by class,
Hard Red Winter wheat abandonment could end at 38.3%, highest in
our recorded history going back to 1983," said Terry Reilly, a
senior analyst at Futures International.
The most-active wheat contract on the Chicago Board of Trade
(CBOT) rose 0.1% to $6.61-3/4 a bushel, as of 0213 GMT,
after hitting its highest since May 8 at $6.64-1/4 a bushel.
Corn fell 0.4% to $5.90-1/4 a bushel and soybeans gave up 0.2% to $13.98-1/2 a bushel.
Wheat prices have been rising on fears of tightening
supplies after the USDA's first official forecast of U.S.
2023-24 all-wheat production, at 1.659 billion bushels, fell
below most analysts' expectations.
The harvest of hard red winter wheat in the drought-stricken
Plains would be the smallest since 1957.
The UN aid chief said on Monday efforts will continue in
coming days to extend a 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.
Export prices for Russian wheat continued to decline last
week amid low demand and weakening global markets, and stormy
weather affected volumes.
Prices for Russian wheat with 12.5% protein content,
delivered free on board (FOB) from the Black Sea in June, were
$248 a tonne, down $6 from last week, the IKAR agriculture
consultancy said.
Corn and soybeans are facing headwinds after the USDA on
Friday projected hefty year-on-year increases in 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.
Commodity funds were net buyers of CBOT wheat, corn, soybean
and soyoil futures contracts on Monday and net sellers of
soymeal contracts, traders said. (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)
