GRAINS-Wheat up, hovers close to 8-1/2-year high on supply concern
By Michael Hogan
HAMBURG, Aug 16 (Reuters) - Chicago wheat futures rose on Monday, trading close to Friday's 8-1/2-year highs as tightening supplies in big exporting countries underpinned prices.
Chicago Board of Trade's (CBOT) most-active wheat rose 0.8% to $7.68-1/4 a bushel at 1101 GMT. On Friday wheat hit a February 2013 high of $7.74-3/4.
Soybeans rose 0.2% to $13.68-1/2 a bushel. Corn fell 0.1% to $5.72-1/4 a bushel.
The U.S. Department of Agriculture (USDA) last week cut its forecast of global wheat harvests and stocks, after poor weather in Canada, Russia and the United States.
"Wheat is still being supported today by the USDA´s lower forecast of world wheat supplies which shocked the market," said Matt Ammermann, StoneX commodity risk manager. "There is concern in several major regions about both wheat crop sizes and quality with tighter than expected global wheat supplies now being generally accepted."
He added the reduced forecasts for Russia's wheat harvest raised questions about what Moscow will do to slow exports.
"The Russian floating export tax is in place and makes it easy for Moscow to take rapid action to brake wheat exports," he said.
European Euronext wheat futures also rose on Monday after hitting their highest since December 2012 on Friday.
Ammermann said soybeans were supported by strong demand for U.S. supplies, with large U.S. export sales reported last week to China and more expected.
The USDA last week also cut its estimate of U.S. corn production more than most analysts expected.
The extent of last week's downgrade was so severe, it is barely believed and the market is keen for clarity that could be provided by the USDA crop tour.
"Corn is marking time somewhat ahead of the Pro Farmer crop tour of U.S. grain belts starting this week," Ammermann said. "Markets will be interested in whether the tour confirms the USDA´s lower forecast of U.S. corn crop yields made last week." (Reporting by Michael Hogan in Hamburg, additional reporting by Naveen Thukral in Singapore, editing by Barbara Lewis)
