Wheat eases as better supply outlook weighs

PARIS/SINGAPORE, Nov 27 (Reuters): Chicago wheat futures edged lower on Wednesday as a technical bounce from the previous session petered out in the face of improving crop prospects in major production zones worldwide.
Corn and soybeans ticked up as the markets assessed the possible impact of U.S. President-elect Donald Trump's threat of tariffs against major trading partners when he takes office on Jan. 20.
A drop in the dollar and a rise in crude oil lent some support to grains as participants adjusted positions before Thursday's closure for the U.S. Thanksgiving holiday.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 1.0 per cent at $5.52-1/4 a bushel by 1137 GMT, giving back gains from Tuesday when it broke a three-day slide.
While a clutch of tenders by importers and uncertainty over Black Sea export supply helped underpin wheat, supply pressure continued to keep prices within distance of a four-year low struck in late July.
"We have pretty low prices and I can't see them falling much further. But supply fundamentals have improved a bit so we're stuck in a rut," a European trader said of wheat.
US winter wheat crop conditions improved for a fourth straight week following timely rainfall across the Plains this month, according to a US Department of Agriculture report on Monday.
Rainfall in the Black Sea region has eased drought concerns while a drier spell in western Europe this month has helped farmers catch up on sowing.
Expectations of large volumes in ongoing harvests in Australia and Argentina were also offsetting concerns that availability of Russian and Ukrainian wheat may soon subside.
CBOT soybeans added 0.4 per cent to $9.87-3/4 a bushel and corn inched up 0.1 per cent to $4.28-1/4 a bushel.