CBOT wheat steadies near six-week low, corn and soybeans turn lower

By P.J. Huffstutter

PARIS/CANBERRA, Oct 2 (Reuters) - Chicago Board of Trade wheat futures traded either side of unchanged on Friday, hovering near six-week lows, as a Saudi Arabian import tender boosted demand sentiment even as strength in the US dollar continued to cap prices, market analysts said.

CBOT corn futures dipped lower, holding near a six-week low, as Wednesday's larger-than-expected USDA estimate of US corn stocks continued to weigh on the market. CBOT soybeans slipped under pressure from an ongoing US harvest that is projected to be hefty.

Questions about how big this autumn's US corn and soybean harvest will be are being hotly debated by traders, who are anxiously waiting for the US Department of Agriculture's next crop production report and its monthly World Agricultural Supply and Demand Estimates report next week.

Traders are eager for the government's updated forecast, as harvest across much of the Midwest has been delayed by early fall rains, said Don Roose, president of Iowa-based US Commodities.

"The fear going into that report is that USDA said the soybean yield was big in September, and that they'll say it's even bigger in the October report," Roose said. "Right now, the yield debate in the trade continues both for corn and soybeans."

On Thursday, commodity brokerage StoneX SNEX.O lowered its estimate of the average US 2026 corn yield and trimmed its corn production forecast, but raised soybean yield and production estimates from its previous monthly report released on September 8.

The most traded CBOT corn was down 1.05% at $4.97 a bushel, holding near Thursday's six-week low of $4.95, by 11:43 a.m. CDT (1643 GMT). CBOT soybeans were down 0.55% to $12.77 a bushel after touching a five-week low at $12.73-1/4.

The most traded wheat contract on the Chicago Board of Trade was down 0.04% at $6.82-1/2 a bushel.

Saudi Arabia on Thursday announced it is seeking to buy 535,000 metric tons of wheat for shipment in November and December. Traders viewed the tender as a sign that the recent price fall was stirring fresh demand after Saudi Arabia cancelled its previous wheat tender on September 7 because of high prices.

The dollar index was on track for a fourth straight weekly gain against the euro on Friday, supported by elevated US Treasury yields amid a selloff in European government bond markets and expectations the Federal Reserve will maintain its hawkish interest rate stance. US currency strength makes dollar-denominated commodities more expensive for overseas buyers. FRX/

A lack of progress in diplomatic efforts to restore normal shipping through the Black Sea also underpinned wheat prices. Russian President Vladimir Putin on Thursday rejected proposals for a truce in Black Sea attacks.