PARIS/MUMBAI, Feb 17 (Reuters) – Chicago soybeans extended their gains on Thursday, buoyed by the risk of further drought losses for South American crops despite an improved outlook for rain next week.
Corn was little changed, supported by uncertainty over South American weather but held back by weaker crude oil.
Wheat rose as reports of shelling in eastern Ukraine brought attention back to tensions between Russia and the West over Ukraine. Wheat, however, pared its earlier gains as strong bids for Russian, Ukrainian and Romanian wheat in an Egyptian-held tender tempered concerns over disruption to grain shipments from the sea. Black.
“Markets are currently driven by the situation in the Black Sea, but also by the weather on the South American continent, to which must be added the uncertainty on Chinese imports of corn and soybeans,” the consultancy said. Agritel in a note.
The most active soybean contract on the Chicago Board of Trade (CBOT) rose 0.8% to $15.99-3/4 a bushel at 12:17 GMT, after rising 2.3% on Wednesday. The contract was facing chart resistance at the psychological level of $16, which it broke last week en route to a nine-month high. Grain markets were awaiting further clues on demand from weekly U.S. export sales later Thursday. A string of US soybean exports to China contributed to the strength in prices, but Chinese demand for US corn has lagged.
The soybean market was also buoyed by a fire this week at a Louis Dreyfus Company (LDC) site in Claypool, Indiana, which is the world’s largest fully integrated soybean and biodiesel processing facility.
CBOT corn was unchanged on the day at $6.47 a bushel, while CBOT wheat rose 0.4% to $7.89 a bushel. Russian-backed rebels and Ukrainian forces on Thursday traded accusations of firing shells across the ceasefire line in eastern Ukraine.
But bids cited by traders in the Egyptian tender showed companies were still willing to ship grain from the Black Sea region.
Price at 1217 GMT Last modification PCT Find YTD PCT Move 2021 Move Cbot Wheat 789.00 2.75 0.35 770.75 2.37 CBOT Corn 647.00 0.00 0.00 593.25 9.06 CBOT SOY 1599.75 12.25 0.77 1339.25 19.45 0.38 278.50 -5.21 Paris Matias 248.50 0.50 0.20 226.00 9.50 0.20 rapeseed 705.75 3.50 0.50 754.00 -6.40 WTI crude oil 91.78 -1.88 -2.01 75.21 22.03 Euro/dlr 1.14 0.00 -0.03 1.1368 0.02 Trompiz and Rajendra Jadhav; Editing by Rashmi Aich, Subhranshu Sahu and David Evans)
© Copyright Thomson Reuters 2022. Click for restrictions – http://about.Reuters.com/fulllegal.asp