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GRAINS-Wheat falls for third session as Black Sea export deal extended

SINGAPORE, May 18 (Reuters) - Chicago wheat futures lost more ground on Thursday, as an extension of a deal to allow war-ravaged Ukraine to continue exporting grains eased concerns over world supplies.

Corn slid to trade near an 18-month low hit in the previous session after China cancelled purchases of U.S. cargoes and as favourable weather helped newly planted crops in the Midwest.

FUNDAMENTALS
The most-active wheat contract of the Chicago Board of Trade (CBOT) Wv1 slid 0.8% to $6.20-1/4 a bushel, as of 0019 GMT, extending losses for a third session. Corn CV1 fell 0.8% to $5.57 a bushel and soybeans Sv1 gave up 0.3% to $13.32-1/2 a bushel.

The Ukraine Black Sea grain deal has been extended for two more months, in what U.N. Secretary-General Antonio Guterres hailed as "good news for the world," a day before Russia could have quit the pact over obstacles to its grain and fertiliser exports.

Corn futures faced pressure after the U.S. Department of Agriculture said private exporters cancelled purchases of 272,000 tonnes of old-crop U.S. corn earmarked for China, the fourth such cancellation in the last month.

Meanwhile, the 2023 U.S. corn and soybean crops are off to a solid start, with a faster-than-average planting pace and mostly crop-friendly weather pointing towards rising supplies.

Commodity funds were net sellers of CBOT wheat, soybean, corn, soyoil and soymeal futures contracts on Wednesday, traders said.

MARKET NEWS
Wall Street rallied to a higher close on Wednesday, gathering momentum throughout the afternoon trading, and the dollar touched a six-week high as regional banks surged and negotiations in Washington over raising the debt ceiling progressed.
By: via Malaysian Palm Oil Council Russia