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GRAINS-Chicago wheat near record highs on supply concerns

May 17 (Reuters) - Chicago wheat futures on Tuesday neared a record peak set in March after the U.S. Department of Agriculture reported a worsening condition of the winter crop, deepening worries over supply in an already-tight market.

The significance of U.S. crops has risen after the Russian invasion of Ukraine hampered shipments from the key Black Sea region and India unexpectedly closed its doors on wheat exports.

FUNDAMENTALS
The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 rose as much as 2.2% to $12.75 a bushel, the highest since March 8, when it hit a record high of $13.64.

CBOT corn Cv1 was down 0.5% at $8.05-1/4 a bushel as of 0204 GMT, after touching a two-week peak in the previous session.

CBOT soybeans Sv1 were 0.1% higher at $16.58 a bushel.

The USDA on Monday rated 27% of the U.S. winter wheat crop in good to excellent condition, down 2 percentage points from the previous week and below analysts' expectations, while spring wheat was 39% planted, below expectations of 43%.

The USDA's weekly crop progress report also showed farmers had planted 49% of their corn crop, in line with expectations, as warm and dry conditions across much of the Midwest finally allowed growers to push through delayed planting tasks.

Wheat importers in Asia were scrambling to find new sources of supply on Monday after India banned exports of the grain in a bid to keep a lid on soaring domestic prices, according to trade sources.

The United States supports efforts by U.N. Secretary-General Antonio Guterres to get Ukrainian grain back into the international marketplace amid the war.

Rain in large parts of France overnight provided some relief but not enough for cereals suffering a prolonged drought.

Farm areas in Brazil's center-south areas, including the states of Parana and Minas Gerais, may be hit by light frosts in coming days, raising concern about corn, coffee and sugarcane crops.

MARKETS NEWS
Asian shares edged higher despite data reinforcing investor fears the global economic recovery may be more fragile than expected, even as inflationary pressures remain high.
By: via Malaysian Palm Oil Council Russia