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Wheat on course for weekly gain as lower U.S. yields raise supply concerns

U.S. wheat futures, which edged lower on Friday after rallying the previous day, were poised to record weekly gains of more than 2.5% on global supply concerns amid signs of lower-than-expected yields in a key U.S. growing region.


* The most active wheat futures on the Chicago Board of Trade Wv1 were down 0.5% at $7.01-1/2 a bushel by 0126 GMT, having ended up 2.4% on Thursday when prices hit a one-week high of $7.06-3/4 a bushel.

* Wheat up 2.5% for the week after closing 1.2% lower in the previous week.

* The most active soybean futures Sv1 up nearly 1.5% for the week after falling about 3% last week.

* The most active corn futures Cv1 up more than 1.5% for the week after declining 1.6% in the previous week.

* Scouts on the second day of the Wheat Quality Council’s annual tour found that spring wheat yield prospects in northwest North Dakota were well below average.

* The final yield projection for North Dakota, the top U.S. spring wheat producer, peg the state’s yield at 29.1 bushels per acre, far short of the crop tour average from 2015 to 2019 of 43.6 and the lowest on record going back to 1993.

* The International Grains Council cut its 2021/22 world wheat crop outlook by one million tonnes to 788 million, with the diminished outlook for North America partially offset by improved prospects in the European Union.

* The IGC raised its forecast for world 2021/22 corn (maize) production by one million tonnes to 1.202 billion tonnes.


* The dollar languished near a one-month low on Friday and was poised for its worst weekly performance since May as dovish remarks by the U.S. Federal Reserve together with underwhelming economic data took the steam out of a month-long rally. USD/

* Oil prices rose on Thursday, with global benchmark Brent topping $76 a barrel, as supplies in the United States tightened further after shrinking to the smallest levels since January 2020. O/R

* U.S. shares bounded to record highs on Thursday helped by strong company earnings and solid economic growth data, though the Federal Reserve’s message earlier this week that it was in no hurry to taper stimulus pinned the dollar at a one-month low.
Source: Reuters (Reporting by Colin Packham; editing by Vinay Dwivedi)

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