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Wheat prices edge up after drone attack on Russian port

By Reuters News

LONDON, Nov 11 (Reuters) - Chicago wheat futures rose on Wednesday with a drone attack on the Baltic Sea port of Ust-Luga adding to concerns about major Russian exporters facing disruption.

Soybeans edged lower, however, after rising by 3.4% on Tuesday, following a US Department of Agriculture report that unexpectedly forecast tighter US supplies.

The most-traded wheat contract on the Chicago Board of Trade (CBOT) climbed 0.4% to $5.95 a bushel at 1146 GMT while soybeans fell 0.4% to $12.22-3/4 a bushel.

"Wheat is seeing support from lack of concrete news about the Abu Dhabi talks and whether a safe shipping deal is on the way for the Black Sea. Meanwhile, Russia and Ukraine continue heavy attacks with the attack on Ust-Luga worrying," one European trader said.

Ust-Luga is among several Baltic Sea ports heavily used for Russian grain exports following the virtual stop to Black Sea shipments in August.

Russian, Ukrainian and US officials began a second day of peace talks in Abu Dhabi on Wednesday, resuming meetings which Kyiv and Washington depicted on Monday as constructive but which produced no early signs of a breakthrough.

Several factors continue to weigh on CBOT soybeans, which last Friday fell to $11.84, their lowest since mid-August.

Hopes for a de-escalation in the US-Iran war have helped push down crude oil and palm oil prices , , pressuring soybeans used as a feedstock for biofuel. Also, soy planting in top producer Brazil is progressing well and Russia-Ukraine peace talks could increase crop supply through the Black Sea.

"It wouldn't surprise me if the bearish momentum returned, at least in the short term," said Sean Hickey, an analyst at Bendigo Bank Agribusiness.

Corn futures also dipped slightly, with the most-active CBOT contract down 0.7% at $4.46 a bushel.

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