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CEREALS-Wheat falls near 2-year low as supply issues ease

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By Naveen Thukral

SINGAPORE, May 1 (Reuters)Chicago wheat futures fell on Monday, with prices trading near last week’s lowest in nearly two years, as rain on the U.S. Plains and easing concerns over Ukrainian supplies weighed on the market.

Corn and soybeans lost ground.

“While more rain will be needed in the central and southern plains (…), a flurry of rainfall certainly leaves a bearish element in the market,” commodity research firm Hightower said in a report.

Chicago Board of Trade (CBOT) most active wheat contract Wv1 lost 0.7% to $6.29-1/2 a bushel, 02:12 GMT and corn CV1 fell 0.4% to $5.82-1/2 a bushel. Soy Sv1 fell 0.2% to $14.16-1/4 a bushel.

Recent rainfall in the drought-stricken US plains and forecasts for others have eased concerns about hard red winter wheat production.

In a sign that more Ukrainian grain may hit the market, the European Commission said on Friday it had reached an agreement in principle to allow the resumption of the transit of Ukrainian cereals through five countries of the European Union which had imposed restrictions.

The corn market is facing headwinds as a large Brazilian crop meets demand for US supplies.

A bumper crop of Brazilian soybeans is also expected to flow to export markets, offsetting a drought-hit crop in Argentina.

Big speculators increased their net short position in Chicago Board of Trade corn futures in the week to April 25, according to regulatory data released Friday.

The Commodity Futures Trading Commission’s Weekly Trader Commitments Report also showed that non-commodity traders, a category that includes hedge funds, increased their net short position in CBOT wheat and reduced their net long position in soybeans. .

(Reporting by Naveen Thukral; editing by Uttaresh Venkateshwaran)

((naveen.thukral@thomsonreuters.com; +65-6870-3829; Reuters Messaging: naveen.thukral.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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