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GRAINS-U.S. wheat futures extend rally, corn retreats from 5-week peak

April 13 (Reuters) - U.S. wheat futures were firmer in early Asian trading on Wednesday, extending gains on persistent worries about Black Sea grain exports disrupted by the Russia-Ukraine conflict, while corn retreated from a five-week high.

FUNDAMENTALS
The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was up 0.3% at $11.16 a bushel, as of 0039 GMT, trading near Tuesday's three-week high of $11.25.

CBOT corn Cv1 shed 0.4% to $7.73 a bushel, after rallying to as high as $7.79 in the previous session, its strongest since March 7.

CBOT soybeans Sv1 edged up 0.1% to $16.71-1/4 a bushel.

Wheat has also been supported by worries about the drought persisting in the U.S. Plains wheat belt.

India is heading for a record-large wheat harvest in 2022/23, aided by highly favourable weather conditions, according to the U.S. Department of Agriculture (USDA).

CBOT corn was buoyed on Tuesday by a plan by U.S. President Joe Biden's administration to raise demand for biofuels including corn-based ethanol, and worries about a slow start to U.S. planting.

Brazil's 2022/23 corn output is expected to top 118 million tonnes, according to the USDA.

Argentine truck owners extended a grains transport strike on Tuesday, bringing grains haulage traffic to a virtual halt at the peak of the harvest season in the world's leading exporter of processed soy and number two shipper of corn.

Egypt is considering adding wheat from India to 16 other national import origins accepted by its state grains buyer, as it seeks to shore up purchases disrupted by Russia's invasion of Ukraine.

Concerns about U.S. inflation lent support to commodities.

MARKET NEWS
Global equities reversed earlier gains on Tuesday, while U.S. Treasury yields slipped as data showing a jump in U.S. inflation was in line with expectations gave investors some relief.
By: via Malaysian Palm Oil Council Russia