Chicago wheat prices dropped to their lowest level in a week on Monday, as exports from the Black Sea Region kept the market defensive.

The price of corn eased, while the price of soybeans increased ahead of a report on supply and demand from the U.S. Department of Agriculture that is due at 1600 GMT this Thursday.

The Chicago Board of Trade's (CBOT's) most active wheat contract was down 0.6% by 1055 GMT, after reaching its lowest since September 2 at $5.62 per bushel.

Corn dropped 0.4% to $4.04-3/4 per bushel, while soybeans increased 0.45% to $10.09-12 per bushel.

Dealers reported that Russian wheat exporters continued to provide supplies at very low prices, while the pace of Ukrainian shipments also remained high.

The Agriculture Ministry reported on Monday that Ukraine's grain exported in the July-June 2024/25 season had risen from 5.1 to 7.6 millions metric tons, compared with the same date the previous season.

This volume includes 4.1 million tonnes of wheat.

In a report, ING stated that the increase was largely due to wheat exports which had almost doubled since last year.

The consultancy APK-Inform said that it has raised its forecast of Ukraine's July-June 2024/25 wheat exports from 13,4 million tons to 13.8 millions metric tons.

However, dealers noted that quality concerns in Ukraine could limit milling wheat exports.

Weak harvests in Western Europe continued to support wheat prices. France is particularly hard-hit and will likely produce the lowest volume in over 40 years.

A poll of 10 market analysts and institutions revealed that Brazilian soybean producers could produce 14% higher in 2024/2025 than the previous season, as more rain is expected to fall in the final quarter of the year.

On Friday, regulatory data revealed that large speculators reduced their net short positions in Chicago Board of Trade Corn Futures during the week ending September 3.

The Commodity Futures Trading Commission’s weekly commitments report of traders also revealed that non-commercial traders – a group that includes hedge fund traders – reduced their net short positions in CBOT soybeans and wheat. (Reporting and editing by David Goodman. Additional reporting by Naveen Thkral in Singapore)

(source: Reuters)