GRAINS-Wheat heads for biggest weekly fall since June on ample supply

CANBERRA, Dec 19 (Reuters) - Chicago wheat futures headed for their biggest weekly fall since June, as abundant global supply as well as a boost to local supply from the cancellation of U.S. shipments to China drove prices towards their lowest since 2020.

Soybean futures declined for a sixth day, reaching their lowest since October 24, as speculative investors reduced their net long position due to ample global supply and questions over Chinese demand for U.S. beans.

Corn dipped after two days of gains, driven by strong U.S. exports.

FUNDAMENTALS

• The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was down 0.3% at $5.06-1/4 a bushel at 0309 GMT and on track to end the week down 4.4%.

• CBOT soybeans Sv1 fell 0.3% to $10.49-1/2 a bushel and were down 2.5% from last Friday's close, while corn Cv1 slipped 0.2% to $4.43-1/2 a bushel, still set for a 0.6% weekly gain.

• Wheat fell below its 50-day moving average on Monday and slumped to an eight-week low of $5.04 on Wednesday, near October's five-year low of $4.92-1/4.

• Both CBOT wheat and soybeans have fallen 10% from highs last month, while corn held near six-month highs. 2025 was a year of abundance for grains, with large harvests keeping prices in check.

• Big ongoing harvests in Argentina and Australia are pouring new supply onto the market. Top exporter Russia expects a bumper 90-million-ton crop next year, officials said.

• The U.S. Department of Agriculture said on Wednesday U.S. exporters had cancelled sales of 132,000 metric tons of U.S. white wheat to China. The reason for the cancellation was not known, but traders said Argentine wheat was available at lower prices.

• Supply pressure from Argentina's harvest was tempered, however, by expectations that rain damage to crops would mean it shipped more feed wheat to Asia and less milling wheat to Africa.

• Consultancy Expana expects EU soft wheat production to decline 6.2% to 128.3 million tons in 2026/27 following this season's bumper crop.

• Commodity funds were net buyers of wheat on Thursday for the first time in a week, traders said

MARKETS NEWS

• Asian share markets rebounded on Friday as a turnaround in tech lifted Wall Street, leaving investors counting down to a likely hike in interest rates from the Bank of Japan that could cause waves for currencies and bonds. MKTS/GLOB