Wheat falls 1.0pc on fund selling, Ukraine shipments

CHICAGO, Sept 3 (Reuters): US grains fell on Tuesday, with wheat futures down more than 1 percent on pressure from plentiful global supplies and selling by investment funds on the first trading day of the month, analysts said.

Wheat futures, which rose to a three-week high last Thursday on short-covering tied to escalating Ukraine-Russia tensions, reversed course and notched their largest two-session decline since Aug. 13.

The European Union was considering extending a capital borrowing ban on Russian-owned firms in the European Union but the Black Sea grain export hub was otherwise relatively quiet. Rising wheat, corn and barley exports out of Ukraine also weighed as data showed no disruptions in shipments.

"There's no new story and that's kind of bearish," said Austin Damiani, an analyst at Frontier Futures in Minneapolis.

Most-active Chicago Board of Trade December wheat finished 8-1/2 cents lower at $5.55 per bushel, while corn for December delivery shed 1 cent to $3.63-3/4.

Soybean futures gained in a bull-spreading advance amid fresh fund buying in the new month and tight supplies that supported the U.S. cash market. Soymeal was up 2 percent.