Chicago futures dip on Ukraine supply deal; USDA report in focus
Chicago grain futures dipped in early Asian trading on Monday after France’s transport minister said he would sign an agreement with Romania to help increase Ukrainian grain exports to developing countries.
Losses, however, were capped ahead of a monthly U.S. Department of Agriculture (USDA) supply-and-demand report, with the agency expected to lower its U.S. harvest forecasts, particularly for corn.
* The most-active corn contract on the Chicago Board of Trade (CBOT) was down 0.8% at $6.79-1/2 a bushel, as of 0113 GMT.
* Wheat fell 0.9% to $8.62 a bushel, while soybeans lost 0.5% to $14.05 a bushel.
* France’s transport minister, Clement Beaune, said the deal with Romania covered exports by land, sea and river.
* Romania, the European Union’s second-largest exporter of wheat to non-EU countries, including Egypt, after France and the largest in maize, has been one of the alternative routes used to export Ukrainian grain.
* The USDA’s monthly World Agricultural Supply and Demand Estimates (WASDE) and Crop Production reports were scheduled for release at 12 p.m. EDT (1600 GMT) on Monday.
* Britain dismissed as untrue on Sunday Russian President Vladimir Putin’s assertion that only a fraction of grain exported from Ukraine under an international deal was going to poor countries.
* The United States is working with the United Nations to address Russian complaints that sanctions are hindering its food and fertilizer shipments, even though there has been no disruption to Moscow’s exports of the commodities, a senior U.S. official said on Friday.
* Putin had told his French counterpart Emmanuel Macron that the European Union should not hinder Russian food and fertilizer supplies to Africa, the Middle East and Latin America, the Kremlin said on Sunday.
* Asian share markets made cautious gains on Monday on hopes a key reading on U.S. inflation will show some cooling, while the U.S. dollar was restrained by the risk of higher European interest rates and Japanese intervention.
0600 UK GDP Est 3M/3M
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1200 India Industrial Output YY (Reporting by Enrico Dela Cruz in Manila; Editing by Subhranshu Sahu)