* USDA report may show U.S. winter wheat area at new low
* U.S. corn, soy harvest estimates also expected to be cut (Adds quote, updates prices)
By Nigel Hunt
LONDON, Jan 10 (Reuters) - Chicago wheat futures rose to a one-week peak on Friday, supported by prospects of a U.S. report showing a further decline in U.S. winter wheat sowings, while corn and soybeans also edged higher.
The most-active Chicago Board Of Trade wheat contract was up 0.3% at $5.63-3/4 a bushel as of 1005 GMT, after rising to $5.65-1/2, while March wheat on Paris-based Euronext was unchanged at 191.75 euros a tonne.
Traders were looking ahead to Friday’s U.S. Department of Agriculture (USDA) reports, scheduled for release at 1700 GMT.
Analysts expect them to show a decline in winter wheat sowings in the United States, lower grain stocks and smaller U.S. corn and soybean harvests in 2019.
“Some of those farmers who wanted to plant winter wheat directly after harvesting the soybean crop may not have been able to clear their fields of soybeans quickly enough for the winter wheat to be sown within the necessary timeframe,” Commerzbank said in a market note.
“Consequently, the U.S. winter wheat acreage may hit a new low since records began in 1909, when only 29.2 million acres were planted.”
The most-active Chicago Board Of Trade corn contract was up 0.5% at $3.85 a bushel.
“The USDA report might be a bit supporting for corn,” said a Singapore-based feed grains trader at an international trading company.
“It is not just crop which is lower, we are hearing of quality issues. There is excess moisture.”
U.S. corn and soybean crops suffered from adverse weather during the growing season in 2019.
The most-active CBOT soybean contract was up 0.1% at $9.44-3/4 a bushel.
The soybean market was underpinned by easing tensions between the United States and Iran, although abundant world supplies limited gains.
Tensions between Washington and Tehran have risen since President Donald Trump ordered the U.S. drone killing of a top Iranian general last week. Trump, however, has refrained from ordering more military action and Iran’s foreign minister said the strikes on Iraqi bases that house U.S. forces had “concluded” Tehran’s response.
Brazilian consultancy Agroconsult boosted its soy crop estimate on Thursday to a record-setting 124.3 million tonnes but trimmed its corn crop view.
Grain traders are also awaiting more details on the Phase 1 U.S.-China trade deal due to be signed next week.
However, large Chinese purchases of Brazilian soybeans and a pair of unexpected policy moves by Beijing have dimmed U.S. hopes that China would double its imports of American farm products this year. (Additional reporting by Naveen Thukral in Singapore, Editing by Sherry Jacob-Phillips and Maju Samuel)