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Drought likely to negatively impact Kansas City wheat
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Russia threatens West as Turkey seeks grain deal extension
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Markets await monthly supply and demand report from USDA
MEXICO CITY, April 10 (Reuters) - Chicago wheat futures were higher on Monday, as dry weather put Kansas City wheat at risk and Russia's threat to bypass a UN-brokered grain deal underpinned prices, traders said.
Corn and soy prices also rose slightly, clawing back some ground lost earlier in the session.
"In the western part of the belt where all that high protein wheat is, they need rain, so it's push and pull," said Craig Turner, a commodities broker at Daniels Trading.
The most-active wheat contract on the Chicago Board of Trade (CBOT) had gained .26% to $6.77-1/2 a bushel by 1009 CDT (1509 GMT). Corn was up 0.7% to $6.48 a bushel while soybeans added 0.18% to $14.95-1/4 a bushel.
Russia on Friday threatened to bypass the UN-brokered grain deal unless obstacles to its agricultural exports were removed, while talks in Turkey agreed removing barriers was a necessary condition to extending the agreement beyond next month.
Russian Foreign Minister Sergei Lavrov attending talks in Ankara said he and Turkish counterpart Mevlut Cavusoglu discussed "a failure" to implement the terms of the deal.
He said Russia could work outside it if Western countries maintain what he said were obstacles to agricultural exports that were getting tougher.
Ukraine's grain exports for the 2022/23 season were at 38.8 million tonnes as of April 10, Agriculture Ministry data showed on Monday.
The volume so far in the current July-to-June season included about 13.3 million tonnes of wheat, 22.8 million tonnes of corn and 2.31 million tonnes of barley.
Traders were looking to the release of a monthly global supply and demand report from the U.S. Department of Agriculture on Tuesday.
"Markets are going to be looking for the USDA to reduce South American production to get more in line with what the reporting agencies in Argentina and Brazil have been saying," Turner said.
"Once they do, that likely increases U.S. exports," he added. (Reporting by Cassandra Garrison in Mexico City and Naveen Thukral in Singapore, Additional reporting by Nigel Hunt in London; Editing by Subhranshu Sahu, Nivedita Bhattacharjee, Kirsten Donovan and Deepa Babington)
