Wheat falls on improved Black Sea outlook, soybeans and corn flat

By Sybille de La Hamaide and Naveen Thukral

PARIS/SINGAPORE, Nov 6 (Reuters) - Wheat slid on Friday on prospects of a resumption of Black Sea grain exports, while soybeans and corn were nearly unchanged, torn between gains in oil prices supporting agricultural goods and expectations of ample global supplies.

The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.1% at $11.87-1/4 a bushel by 1200 GMT, while corn also shed 0.1% to $4.39-3/4 a bushel. Wheat lost 1.5% to $5.90-1/2 a bushel.

Russia and Ukraine confirmed participation in three-way peace talks with the US in Abu Dhabi on November 10 and 11, raising the prospect of renewed access to Black Sea shipping lanes.

Wheat prices have rallied this year as the Russia-Ukraine war disrupted grain exports, but alternative shipping routes have helped avert supply shortages many traders had feared.

Growing volumes of Russian wheat are being exported via Baltic ports, while Ukrainian exports are also increasing, especially via Romania and the Danube.

Soybeans are down more than 3% this week, heading for their biggest weekly drop since late July, and corn is poised for a sixth consecutive weekly loss.

"The downside is limited at current levels," said one grains trader in Singapore. "Oil is bit supportive, but we don't expect a big move before next week's US report."

China is projected to import 110 million metric tons (MMT) of soybeans in the 2026-27 marketing year, the US Department of Agriculture's attache in Beijing said in a report dated Wednesday, putting the forecast below the USDA's official one.

On Friday, grains and oilseeds were underpinned by a rally in crude oil futures, which often provide direction to farm goods for their growing use in making biofuels.

Brent crude oil prices were set for their sharpest weekly fall since 2020 after the election losses of US President Donald Trump's Republican Party raised hopes of a de-escalation in the US-Israeli war on Iran and a stock market selloff. O/R

On the grains supply side, the US Department of Agriculture is scheduled to issue an update on the size of the nation's crops in a monthly report next week.

Analysts expect the agency to peg corn production at 15.962 billion bushels, down from its October estimate of 16.034 billion, according to a Reuters poll. The harvest would be the second largest in history, after last year's record crop.

They expect the USDA will increase its estimate of US soybean production to 4.597 billion bushels from 4.562 billion in October, a record harvest, next week.