Wheat recovers from 6-month low; soybeans, corn ease


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PARIS/SINGAPORE — Chicago wheat futures edged up on

Thursday after hitting a six-month low in the previous session, as participants

awaited news on further grain shipments from Ukraine under a maritime corridor

agreement.

Corn ticked lower as the market remained curbed by the resumption of sea

exports from war-torn Ukraine as well as more favorable weather forecasts in

the U.S. Midwest.

Soybeans also inched down, with macro-economic uncertainty also hanging over

grain and oilseed markets.

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The most-active wheat contract on the Chicago Board of Trade (CBOT)

was up 0.1% at $7.64-1/4 bushel by 0856 GMT, after dropping to its lowest since

early February at $7.52 a bushel on Wednesday.

This week’s departure of a first grain vessel from Odesa port, along with

ongoing northern hemisphere harvesting, has eased supply concerns in wheat,

although brisk demand from importers has lent some support to prices.

Crude oil touching a near six-month low on Wednesday had also weighed on

grains, reflecting investor concerns about weakening economic demand and

geopolitical tensions over Taiwan.

“The macro environment is on the negative side of the ledger, adding

additional bearish pressure to Ukraine export headlines, better U.S. Midwest

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rains and bearish seasonals,” Peak Trading Research said in a note.

The first grain vessel to leave a Ukrainian sea port since the start of the

war was inspected in Turkey on Wednesday before its onward journey to Lebanon,

fueling market expectations that further loadings may follow under the

safe-passage agreement.

Soybeans and corn were pressured by weather charts, suggesting more

widespread rain and less extensive heat in the U.S. Midwest in the week ahead.

However, traders are still cautious given parched conditions in part of the

central U.S. crop belt, with attention starting to turn towards next week’s

monthly production forecasts from the U.S. Department of Agriculture.

CBOT soybeans lost 0.2% to $13.67-1/4 a bushel and corn gave up

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0.5% to $5.93-1/2 a bushel.

Grain markets will get an update on demand from weekly U.S. export sales

data later on Thursday.

Prices at 0856 GMT

Last Change Pct End Ytd Pct

Move 2021 Move

CBOT wheat 764.25 0.50 0.07 770.75 -0.84

CBOT corn 593.50 -2.75 -0.46 593.25 0.04

CBOT soy 1367.25 -2.50 -0.18 1339.25 2.09

Paris wheat 337.75 0.75 0.22 276.75 22.04

Paris maize untraded 226.00

Paris rape 634.00 1.00 0.16 754.00 -15.92

WTI crude oil 90.93 0.27 0.30 75.21 20.90

Euro/dlr 1.02 0.00 0.27 1.1368 -10.35

Most active contracts – Wheat, corn and soy US cents/bushel, Paris

futures in euros per tonne

(Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by

Subhranshu Sahu and Rashmi Aich)

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