SINGAPORE: Chicago wheat rose for a second day on Friday, eyeing a positive weekly finish, as supply concerns from the Black Sea region surfaced after Moscow said it was prepared to reject renewing its export corridor deal unless its demands were addressed.

Soybeans and corn eased, although both markets were on track for weekly gains, underpinned by expectations of lower US harvests.

“Russia threatened not to renew the Black Sea safe passage agreement set to expire November,” said Terry Reilly, senior commodity analyst with Futures International in Chicago.

“The Russia Geneva UN ambassador warned Moscow submitted concerns to the United Nations over the Black Sea safe passage agreement and may not renew the deal next month unless demands are met.”

The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.3% at $8.95 a bushel, as of 0237 GMT. The market has gained 1.7% so far this week, after finishing lower last week.

Soybeans and corn have added more than 2% this week. Wheat climbed on news that Russia delivered a list of concerns about its Black Sea export corridor deal to the United Nations.

UN officials are due in Moscow on Sunday to discuss the renewal of the agreement.

The UN-brokered deal had opened a safer path for grain shipments from major exporter Ukraine.

Domestic consumers: Wheat price surges nearly 29pc in six months

Exports had been blocked following Russian President Vladimir Putin’s order to invade its neighbour in late February. For corn and soybeans, US forecast of lower output supported prices.

In its monthly supply-and-demand report on Wednesday, the US Department of Agriculture (USDA) said US corn and soybean crops would be smaller than previously forecast, raising concerns about tight global inventories.

But the agency also trimmed its demand outlook, most notably for exports which will likely face stiff competition from South American crop shipments.

The government also cut its outlook for the domestic stockpile of wheat to the lowest in 15 years.

In South America, Argentina’s two major grains exchanges cut their forecasts for the upcoming wheat harvest on Thursday as drought and low temperatures hit the crop, with little relief in sight for key farming regions and scant rains forecast in weeks ahead.

Commodity funds were net buyers of CBOT wheat, corn, soybean and soyoil futures on Thursday and net even in soymeal futures, traders said.