Wheat drops to over 3-1/2-year low on Black Sea supply pressure, corn eases

SINGAPORE, March 7 (Reuters) - Chicago wheat slid for a third consecutive session on Thursday, with the market dropping to its lowest since August 2020 as fierce competition among exporters provided headwinds to prices.

Corn eased, giving up some of last session's gains, while soybeans were largely unchanged.

FUNDAMENTALS

* The most-active wheat contract on the Chicago Board Of Trade (CBOT) fell 0.1% to $5.30-1/4 a bushel, as of 0143, after hitting its weakest since August 2020 at $5.28-1/2 a bushel earlier in the day.

* Corn gave up 0.1% to $4.28-1/2 a bushel and soybeans were flat at $11.48-1/4 a bushel.

* Wheat prices came under renewed pressure after Algeria purchased at least 870,000 metric tons on Tuesday, mostly believed to be cheap wheat produced in the Black Sea region.

* After the close of the CBOT on Wednesday, Egypt's state wheat buyer set an international wheat purchase tender with offers due on March 7.

* For corn and soybeans, traders are awaiting monthly supply/demand report due on Friday from the U.S. Department of Agriculture for a gauge for South American production.

* The high probability of a strong La Nina arriving by October has put grains farmers on alert in Argentina, where the climate phenomenon usually brings dry weather with lower rainfall, the Rosario grains exchange said on Wednesday.

* Commodity funds were net sellers of CBOT wheat futures contracts on Wednesday and net buyers of soymeal, soyoil and corn, traders said. Funds were net even for the day in soybean futures, they said.

MARKET NEWS

* Wall Street followed world shares to a higher close on Wednesday and the benchmark U.S. Treasury yield dipped to a one-month low after Federal Reserve Chair Jerome Powell reassured investors that while inflation is not quite tamed rate cuts can be expected this year.

DATA/EVENTS AHEAD (GMT) 0300 China Exports, Imports YY, Trade Balance USD Feb 0700 Germany Industrial Orders MM, Consumer Goods SA Jan 0700 Germany Manufacturing O/P Current Price SA Jan 0700 UK Halifax House Prices MM, YY Feb 0745 France Reserve Assets Total Feb 1315 Euro Zone ECB Financing, Deposit Rates March 1330 US International Trade $ Jan 1330 US Initial Jobless Claim weekly 1700 US Fed issues quarterly financial accounts of the United States (Reporting by Naveen Thukral; Editing by Rashmi Aich)