* Wheat gains more ground, climbs to highest in six years
* Dry weather in U.S., Black Sea regions raises supply
* Corn prices rebound on expectations of strong demand
SINGAPORE, Oct 19 (Reuters) - Chicago wheat futures climbed
more than 1% on Monday to their highest in almost six years as
dry weather in the world's leading exporting regions raised
worries about supplies for 2021.
Corn gained ground, rising for four of five sessions with
prices supported by expectations of strong demand for U.S.
supplies, while soybeans slid for a second session.
"Weather forecasters have made no changes to their dry
outlook for very dry winter wheat regions in the U.S. and east
of the Black Sea," said Tobin Gorey, director of agricultural
strategy at, Commonwealth Bank of Australia.
"That weather context supports current price levels. The
rally has another potential phase but that is likely to require
the market make substantial cuts to U.S., Ukraine and Russia
The most-active wheat contract on the Chicago Board of Trade
(CBOT) was up 1.3% at $6.33-1/4 a bushel by 0301 GMT, near
the session high of $6.35 a bushel, the highest since December
Soybeans slid 0.1% to $10.49-1/4 a bushel, having
closed down 1.2% on Friday. Corn added 0.6% to $4.04-1/2 a
bushel after ending 0.4% lower in the previous session.
In China, Dalian corn prices jumped 1.4% to an
all-time high as lower production and strong demand continued to
buoy the market.
Wheat was drawing support from concerns over production in
Argentina, the U.S. Plains and the Black Sea region.
Argentina's 2020/21 wheat crop is estimated at 17 million
tonnes, the Rosario grains exchange said in its monthly crop
report last week, citing dryness and frosts as reasons for
cutting its previous 18 million tonne estimate.
The U.S. Department of Agriculture, in its daily reporting
system for export sales, said shippers struck deals to sell a
total of 391,150 tonnes of U.S. soybeans to unknown
destinations. Exporters separately sold 128,000 tonnes of U.S.
corn to Mexico.
Brazil will suspend tariffs on corn and soy imports from
countries outside the Mercosur trade bloc until early next year
to help reduce food prices that are pushing up inflation, the
economy ministry said on Saturday.
The move could further tighten global supplies as Brazil is
the world's biggest exporter of soybeans and a key supplier of
Ukraine has harvested 45.7 million tonnes of grain from
12.06 million hectares, or 78% of the sown area, Ukraine's
economy ministry said on Friday.
It said farmers had collected 10.0 million tonnes of corn
from 2.2 million hectares, or 40% of fields planted with this
Large speculators raised their net long position in CBOT
corn futures in the week to Oct. 13, regulatory data released on
The Commodity Futures Trading Commission's weekly
commitments of traders report also showed that non-commercial
traders, a category that includes hedge funds, raised their net
long position in CBOT wheat and cut their net long position in
"Speculators have been flirting with record optimism in
Chicago-traded soybeans for a couple of weeks, though they
finally broke their bean-buying streak last week as futures hit
2-1/2-year highs," Karen Braun, a market analyst for Reuters,
wrote in a column.
"However, investors' bullish corn run is still alive."
(Reporting by Naveen Thukral; Editing by Aditya Soni)