June 18, 2020 / 3:27 AM / 24 days ago

GRAINS-Wheat drops to lowest since early October on bumper harvest expectations

* Wheat falls for 3rd consecutive session to lowest in 8 months

* Corn firms for 2nd session, gains limited by U.S. crop weather (Adds details on Egypt’s wheat tender, quote in paragraphs 3-4; updates prices)

By Naveen Thukral

SINGAPORE, June 18 (Reuters) - Chicago wheat futures slid for a third consecutive session on Thursday to their lowest in more than eight months as bumper harvest of a Northern Hemisphere crop weighed on the market.

Corn edged higher, although gains were curbed by forecasts of crop-friendly weather across the U.S. Midwest, while soybeans lost ground.

“Seasonal pressure is building in the U.S. as harvesting gathers pace,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.

“U.S. pricing appears very competitive but until we see an uptick in U.S. exports, the seasonal pressure will dominate.”

The market is awaiting results of a tender issued by Egypt, the world’s biggest buyer, seeking an unspecified amount of wheat from global suppliers for shipment from July 25-Aug 5.

The most-active wheat contract on the Chicago Board Of Trade was down 0.4% at $4.87 a bushel by 0305 GMT, after hitting its lowest since early October.

Soybeans were down 0.1% at $8.70-1/2 a bushel and corn added 0.2% to $3.31 a bushel.

The Ukrainian government has raised its grain crop forecast for this year to 68 million tonnes from 65-68 million tonnes, Economy Minister Ihor Petrashko told reporters on Tuesday.

Russia’s grain exports will not be subjected to any quotas from July to December, the agriculture ministry said on Tuesday, citing its initial plan.

U.S. Midwest weather forecasts for rain and easing temperatures in the week ahead tempered concern about stressed corn after a recent hot, dry spell.

Commodity funds were net sellers of CBOT wheat and soymeal futures contracts on Wednesday and net buyers of corn, soybean and soyoil futures contracts, traders said. (Reporting by Naveen Thukral; Editing by Krishna Chandra Eluri)

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