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GRAINS-Wheat falls 1% on global stockpiles, tepid demand

By Colin Packham

SYDNEY, Aug 3 – U.S. wheat futures fell as much as 1% on Monday as ample supplies and concerns over international demand weighed on prices.

Corn edged higher, while soybeans rose more than 0.5% on strong demand for soyoil.

The most active wheat futures on the Chicago Board Of Trade were down 0.8% at $5.26-3/4 a bushel by 0254 GMT, after closing 0.3% lower on Friday.

Analysts said improved outlook for major wheat producing regions was driving losses.

“There is a lot of grain around in the world, while a global pandemic doesn’t bode well for huge increases in demand,” said a Melbourne-based grains trader, who declined to be named as he is not authorised to talk to the media.

The Brazilian wheat crop has the potential to surpass 7 million tonnes this year and reach a record, provided the weather remains favourable throughout the cycle that has just begun, according to analysts interviewed by Reuters.

The most active corn futures were up 0.2% at $3.27-1/2 a bushel, having gained 2.2% in the previous session.

The most active soybean futures were up 0.7% at $8.98-1/2 a bushel, having firmed 0.5% on Friday.

Traders highlighted strong demand.

U.S. Energy Information Administration data on Friday showed that the amount of soyoil used for biodiesel in May rose to 778 million pounds (352.9 million kg), up from 672 million pounds a month earlier.

The USDA last week confirmed that Chinese buyers booked their single biggest purchase of U.S. corn, purchasing 1.937 million tonnes, the latest in a series of large U.S. purchases, even as tensions between Washington and Beijing rise.

(Reporting by Colin Packham; Editing by Rashmi Aich)

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