Chicago grains extend gains on crop risks

By Gus Trompiz and Naveen Thukral

PARIS/SINGAPORE, Aug 10 (Reuters) - Chicago corn, wheat, and soybean futures rose further on Wednesday, with soy hitting a new one-week high, as hot, dry weather in parts of the United States and Europe kept attention on harvest risks. Gains were capped, however, by a cautious mood before U.S. inflation data later on Wednesday and U.S. crop forecasts due on Friday.

The most-active corn contract on the Chicago Board of Trade (CBOT) was up 0.7% at $6.18 a bushel by 1011 GMT, while soybeans added 0.8% to $14.39-3/4 a bushel. CBOT wheat was 1.4% higher at $7.92-1/2 a bushel. Soybeans earlier set a fresh one-week high, although wheat and corn held below their one-week peaks from Tuesday.

The U.S. Department of Agriculture (USDA) on Monday trimmed its weekly soybean condition rating and cut its corn and spring wheat ratings by more than expected. Parts of the Midwest received rain in recent days, but hot weather forecast in the western side of the belt this week is expected to continue stressing crops. In Europe, persisting drought and high temperatures are threatening to deepen yield losses for corn. The weather risks have added to interest in the USDA's monthly supply and demand forecasts due on Friday.

• READ MORE: USDA reports grain conditions down | August 8, 2022

"Markets are tense in Chicago with traders cautious about taking positions ahead of Friday's USDA report," consultancy Agritel said. "Fears are mainly related to the water deficit and the high temperatures currently affecting the major soybean production areas ... Corn yield potential could also be reduced."

Progress in releasing vessels stuck at Ukrainian ports as well as expectations of a record Russian harvest have curbed wheat and corn prices, although traders remained cautious about chances of large-scale flows beyond the clearing of blocked vessels. Two more grain ships left Ukraine's Black Sea ports on Tuesday, bringing the total to depart from the war-torn country under a safe passage deal to 12.

• READ MORE: Grain finally leaving Ukrainian ports, but is it a temporary fix?

Prices at 1011 GMT Last Change Pct End Ytd Pct Move 2021 Move CBOT wheat 792.50 11.00 1.41 770.75 2.82 CBOT corn 618.00 4.00 0.65 593.25 4.17 CBOT soy 1439.75 11.00 0.77 1339.25 7.50 Paris wheat 339.50 -0.75 -0.22 276.75 22.67 Paris maize 328.25 0.75 0.23 226.00 45.24 Paris rape 659.25 -1.00 -0.15 754.00 -12.57 WTI crude oil 89.66 -0.84 -0.93 75.21 19.21 Euro/dlr 1.02 0.00 0.16 1.1368 -10.04 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne.

(Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Subhranshu Sahu, Uttaresh.V and Emelia Sithole-Matarise)

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