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HAMBURG - Chicago wheat rose on Monday on concerns about dryness hitting crops in key Southern Hemisphere exporters Australia and Argentina, but gains were limited by large Russian export shipments.
Corn and soybeans fell as decent U.S. harvest weather continued.
Chicago Board of Trade most active wheat was up 0.5% at $5.82-1/2 a bushel at 1151 GMT. Corn fell 0.1% to $4.76-3/4 a bushel, while soybeans also slipped 0.1%, to $12.94-1/4 a bushel.
Australia's wheat production may decline after hot, dry weather. Argentina's sales of the upcoming wheat crop are the slowest in seven years, delayed by farmers waiting for rainfall and next month's presidential election.
“Wheat continues to face downward pressure from huge export supplies from Russia despite harvest downgrades in Australia and Argentina,” said Matt Ammermann, StoneX commodity risk manager.
“Markets also getting fatigued about the Ukraine war news and are hardly reacting to reports about attacks on Ukrainian port facilities.”
The first big ship carrying grain from a Ukrainian Black Sea port has set sail since Moscow quit a deal in July to allow exports, as a Russian air strike on the Ukrainian region of Odesa caused "significant damage" to port infrastructure and destroyed some grain storage facilities.
“News about grains ships sailing from Ukraine again despite the lack of safety guarantees from Russia is being watched," Ammermann said. "Ukraine’s farmers and grain network is working remarkably normally despite the war. The question is whether some shipowners are deciding to ignore the war dangers and sail to Ukraine, and also how many others will follow.”
Markets are awaiting stocks estimates by the U.S. Agriculture Department on Friday and watching weather as U.S. harvests continue.
“U.S. harvest weather is generally not causing problems for soybeans and corn harvesting, rain forecast for some areas could be welcome to keep dust down," Ammermann said.
(Reporting by Michael Hogan in Hamburg, additional reporting by Naveen Thukral in Singapore; Editing by Sherry Jacob-Phillips, Janane Venkatraman and Susan Fenton)