Wheat under pressure on supply outlook; corn, soy climb

Chicago wheat edged lower on Wednesday, falling for a third straight session, weighed down by expectations of bumper supplies from the northern hemisphere later this year.

Soybeans rose for the first time in three sessions, while corn also firmed.

FUNDAMENTALS

* The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was down 0.1% at $5.57 a bushel, as of 0118 GMT, after dropping 1.4% on Tuesday. Soybeans Sv1 added 0.4% to $11.79 a bushel and corn Cv1 gained $0.4% at $4.33 a bushel.

* Argus has raised its forecast for Russian wheat production this year to 92.1 million metric tons, with an increased estimate for the winter wheat area outweighing less favourable prospects for spring wheat planting and yields.

* The estimate for higher Russian output comes after a U.S. report showed healthy condition of the winter crop despite adverse weather conditions.

* U.S. Department of Agriculture (USDA) crop progress figures released on Monday showed a good/excellent rating for U.S. winter wheat of 56%, despite worries over the impact of past dry weather in the wheat-growing Plains.

* Forecasts for more rain in the U.S. Plains next week and drier conditions in the southern Delta area further eased fears about weather-related stress to wheat crops and delays to corn planting.

* Traders are adjusting their positions ahead of Wednesday’s U.S. inflation data and Thursday’s release of USDA’s monthly supply and demand report and Brazilian agency Conab’s monthly national crop forecasts.

* Commodity funds were net sellers of CBOT corn, soybeans, wheat, soymeal and soyoil futures contracts on Tuesday, traders said.

MARKET NEWS

* MSCI’s global equity gauge rose slightly on Tuesday while U.S. Treasury yields fell from a more than 4-month high as investors anxiously awaited a U.S. inflation reading and the kick-off of first-quarter earnings. MKTS/GLOB

DATA/EVENTS (GMT)

1230 US Core CPI MM, SA; YY NSA March

1230 US CPI MM, SA; YY NSA March

1230 US CPI Wage Earner March

1800 US Federal Open Market Committee issues minutes from its March 19-20 meeting
Source: Reuters (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)