GRAINS-Wheat falls further as US and Russian crops avoid frost damage

CANBERRA, Feb 27 (Reuters) - Chicago wheat futures extended declines in early trade on Thursday after tumbling more than 6% from a multi-month high hit last week, as it became clear that Northern Hemisphere winter crops had got through a period of cold weather without damage.

Corn and soybean futures rose slightly, but were stuck below recent highs, with prices of all three contracts under pressure from renewed fears that tariffs will ensnare agricultural trade and dampen global demand.

FUNDAMENTALS

The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was down 0.2% at $5.78-3/4 a bushel at 0107 GMT, with CBOT corn Cv1 up 0.2% at $4.94-1/4 a bushel and soybeans Sv1 0.1% higher at $10.42-1/2 a bushel.

Wheat last week reached $6.21-1/4, its highest since June 2024, thanks to rising corn prices and expectations of tightening Black Sea supply, but grain remains plentiful for the time being and corn's rally has faltered.

Meanwhile, snow cover has protected wheat crops in the United States and Russia from damage from frosty conditions this month, analysts say.

Traders are worried that proposed U.S. tariffs could spark retaliation against U.S. farm exports and herald an era of protectionism that stifles global economic growth and demand for grains and oilseeds.

The potential for peace between Russia and Ukraine is also pressuring wheat because it would reduce the risk of Black Sea export disruptions, Commonwealth Bank analyst Dennis Voznesenski wrote in a note.

Commodity funds who already held a net short position in CBOT wheat have been selling in recent days, traders said.

Undermining corn prices are expectations that the U.S. Department of Agriculture will at its annual Outlook Forum on Thursday project a shift in acreage from soybeans towards corn as farmers look for profit.

In soy markets, Argentina's main oilseed union SOEA is threatening a national strike in soybean processing plants over a salary dispute at exports conglomerate Vicentin, a union leader said.

MARKETS NEWS

U.S. stocks fluttered to a mixed close on Wednesday amid fresh tariff threats while a draft U.S.-Ukraine deal on critical minerals and robust corporate earnings helped European shares close at a record high. MKTS/GLOB