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U.S. grain, soy edge up but set for weekly losses

LONDON - U.S. wheat futures edged away from the prior session's three-month low on Friday but remained on course for a weekly loss weighed by ample supplies.

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LONDON - U.S. wheat futures edged away from the prior session's three-month low on Friday but remained on course for a weekly loss weighed by ample supplies.

Corn and soybean futures also rose slightly as financial markets settled down after a turbulent week.

"There is still little change to the overall bearish fundamentals, and unless we see a major problem in Australia or U.S. corn/soy crops, there is nothing to suggest any sustained rally in wheat," David Sheppard, managing director of UK merchant Gleadell, said.

"Overall the same scenario persists - too much wheat chasing too little demand," he added in a market note.

December wheat on the Chicago Board of Trade rose 0.15 percent to $4.90-1/2 a bushel by 1128 GMT. The contract was on course for a weekly loss of 2.7 percent.

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The International Grains Council on Thursday raised its forecast for the global wheat crop in 2015/16 by 10 million tons to 720 million tons, reflecting improved outlooks in Russia, Ukraine and the European Union.

Dealers said there was also concern that U.S. wheat was struggling to compete with cheaper supplies from theBlack Sea region, noting Egypt purchased Russian grain at a tender on Thursday.

December milling wheat in Paris was down 1.00 euro or 0.6 percent at 172.75 euros.

Soybean prices were higher, with the market supported partly by stronger-than-expected demand for U.S. supplies.

The U.S. Department of Agriculture reported net weekly soybean export sales for the 2015/16 marketing year that begins Sept. 1 above trade expectations at 1.457 million tons.

Weekly corn export sales were strong as well, at nearly 1 million tons for 2015/16.

CBOT November soybeans rose 0.3 percent to $8.81-3/4 a bushel but were on track for a weekly loss of nearly 1 percent.

Dealers continued to keep a close watch on the weather in the key U.S. Midwest growing region.

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"Weather forecasters continue to expect largely benign conditions in the U.S. Corn Belt for the next week or so. The development window looks likely to close before dryness can become a problem again," analyst Tobin Goreyof Commonwealth Bank of Australia said.

CBOT December corn rose 0.3 percent to $3.76-1/4 a bushel. The contract remained on course, however, for a marginal weekly loss of around 0.3 percent.

Related Topics: WHEATCROPSSOYBEANS
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