SINGAPORE: Chicago wheat futures edged lower on Thursday as harvests in the United States and elsewhere and higher production forecasts in major exporting countries eased supply fears, with the September contract slipping to its lowest level in two months.

Corn and soybean futures also dipped amid easing concerns over a heatwave set to strike US corn and soy crops. With the Chicago Board of Trade (CBOT) reopening after a public holiday on Wednesday, September soft red winter wheat was down 0.1% at $5.98-1/2 a bushel by 0245 GMT, having fallen as low as $5.97.

The contract has fallen in four consecutive trading sessions and is down around 19% from a high seen last month. CBOT soybeans dipped 0.1% to $11.73-1/4 a bushel and corn was trading 0.6% lower at $4.47-1/2 a bushel.

“Grains are trying to stabilise after the latest big drop in prices,” said Ole Houe, director of advisory services at IKON Commodities in Sydney.

“However, in the near term there is not much to stop prices from sliding further,” he said. “There is plenty of wheat coming out of the United States and the Russian crop is stabilising.” Russia’s IKAR agricultural consultancy said on Wednesday it raised its forecasts for the country’s wheat crop to 82 million metric tons from 81.5 million tons. Russia is the world’s biggest wheat exporter.

In Argentina, the Buenos Aires Grains Exchange bumped up its forecast for wheat planting, saying higher wheat prices and lower input costs were pushing more farmers to sow the crop despite dryness in some areas.