* Chicago wheat gains more ground on lower world production
* Soybeans fall as U.S.-China trade war curbs demand
* Corn firm after three days of decline, market eyes USDA data (Adds details, quote)
By Naveen Thukral
SINGAPORE, Nov 1 (Reuters) - Chicago wheat futures rose for a second straight session on Thursday with prices underpinned by lower output in key exporting countries, which is expected to boost demand for U.S. supplies.
Soybeans slid, snapping a two-session rising streak as the Sino-U.S. trade war curbs U.S. shipments of the oilseed to China, the world’s biggest buyer.
The most-active wheat contract on the Chicago Board Of Trade
was up 0.4 percent at $5.02-1/2 a bushel by 0226 GMT, soybeans were down 0.5 percent at $8.47-1/2 a bushel and corn rose 0.2 percent to $3.64 a bushel.
“Staying price competitive is obviously important but ranged against that is less wheat being available,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.
“The EU, Russia and Australia have much less wheat to offer this year. Price is never irrelevant but the available wheat right now is in the U.S. and we expect it to flow.”
U.S. wheat exports have also struggled amid competition for global business from Russia, the world’s biggest supplier. But lower output in some of the top exporters is likely to boost demand for U.S. wheat early next year.
The focus in on monthly supply-and-demand forecasts due from the U.S. Department of Agriculture next week, with some predicting the agency may trim its corn yield estimate.
Uncertainty about demand is adding pressure on the soybean market, as the trade row between Washington and Beijing has nearly halted U.S. soybean exports to China.
Soren Schroder, chief executive officer of global grain merchant Bunge Ltd, said he expected a small cut in China’s year-on-year soy imports due to the trade dispute. China also may not need to revert to buying U.S. soybeans before the next South American crop is available, he said.
U.S. soybean crushing in September likely totalled 5.131 million short tons, or 171.0 million bushels, according to the average forecast of nine analysts surveyed by Reuters ahead of a monthly U.S. Department of Agriculture report.
Commodity funds were net buyers of CBOT soybean, soymeal and wheat futures contracts on Wednesday and net sellers in corn, traders said. (Reporting by Naveen Thukral; Editing by Sunil Nair)