Wheat retreats from near 1-week high though supply concerns cap losses

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CANBERRA — U.S. wheat futures dipped on Wednesday, edging down from a near one-week high touched in the previous session, though global supply concerns amid strong demand limited the losses.

FUNDAMENTALS

* The most active wheat futures on the Chicago Board Of Trade were down 0.1% at $6.99-3/4 a bushel by 0131 GMT, having closed 2% higher on Tuesday when prices hit a Sept. 9 high of $7.01-1/2 a bushel.

* The most active soybean futures were up 0.3% at $12.86-1/2 a bushel, having closed flat on Tuesday.

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* The most active corn futures were up 0.7% at $5.23-3/4 a bushel, having gained 1.4% in the previous session.

* France cut its estimate of soft wheat production in the European Union’s biggest grain grower by more than 600,000 tonnes on Tuesday to 36.06 million tonnes, citing wet summer weather.

* Canada’s drought conditions damaged the wheat harvest even more than it appeared weeks ago, according to a Statistics Canada report estimating spring wheat output at 15.3 million tonnes, down 41% year over year.

* U.S. winter wheat was 12% planted, as of Sept. 5, up from 5% last week, the USDA said.

* The USDA rated 58% of the U.S. corn crop in good-to-excellent condition in its weekly crop conditions report, down 1 percentage point from the previous week.

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* Soybean ratings were unchanged at 57% good-to-excellent. Analysts surveyed by Reuters on average had expected no change for either crop.

MARKET NEWS

* The dollar fell against major currencies on Tuesday after data showed a less-than-expected rise in U.S. inflation last month, creating uncertainty about the timing of the Federal Reserve’s tapering of asset purchases.

* Oil prices ended largely unchanged on Tuesday as tropical storm Nicholas brought heavy rain and power outages in Texas but caused less damage to U.S. energy infrastructure than Hurricane Ida caused earlier this month.

* Global equity markets and U.S. bond yields fell on Tuesday after data showed inflation cooling in the Unites States, raising fresh questions on when the U.S. central bank will begin tapering its asset purchases.

(Reporting by Colin Packham; Editing by Sherry Jacob-Phillips)