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GRAINS-Wheat steadies after slide; corn, soybeans stay weak

reuters.com · 09/01/2021 07:34
GRAINS-Wheat steadies after slide; corn, soybeans stay weak

CBOT wheat recovers from Tuesday's four-week low

Wheat market assesses mixed production, demand signals

Hurricane damage hampers U.S. grain exports

Favourable weather also weighs on U.S. corn, soy prices

Updates with European trading, changes byline/dateline

By Gus Trompiz and Naveen Thukral

- Chicago wheat futures edged up on Wednesday after hitting a four-week low in the previous session, as northern hemisphere harvests wound down and traders assessed latest import demand.

Corn and soybeans extended losses from Tuesday meanwhile as broadly favourable crop weather in the Midwest and concern over hurricane disruption to U.S. exports kept a lid on prices.

The most active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was up 0.4% at $7.24-3/4 a bushel as of 1117 GMT.

On Tuesday, it had slipped to its lowest since Aug. 2 at $7.07 before finding chart support.

Wheat futures climbed to their highest in more than eight years during August as deteriorating harvest prospects in the northern hemisphere unsettled the market.

"The fundamentals of the northern hemisphere (crops) are generally known," consultancy Agritel said in a note. "It is mainly technical considerations that are currently dominating."

Sovecon said on Tuesday it had cut its forecast for Russia's 2021 wheat crop to 75.4 million tonnes from 76.2 million, with the consultancy citing low spring wheat yields. nL1N2Q21B4

Statistics Canada on Monday estimated the country's drought-affected wheat crop would fall sharply from last year, but its official projection was higher than the average from a Reuters poll. nT5N2L702A

On the demand side, the wheat market has been weighing a series of tenders in which importers have shown signs of spreading out purchases in response to high prices. GRA/TEND

CBOT corn Cv1 was down 0.8% at $5.30-1/4 a bushel and soybeans Sv1 0.5% lower at $12.85-3/4 a bushel.

Hurricane Ida damaged a grain export elevator owned by global grain trader Cargill Inc CARG.UL, and rival shipper CHS Inc CHSCP warned on Monday its grain facility may lack power for weeks after the storm tore through the busiest U.S. grains port. nL1N2Q11O2

Forecasts pointed to moderate weather for Midwest corn and soy crops, including rain in some dry northwestern zones, as attention turns to harvesting that is getting under way.




Prices at 1117 GMT







Last

Change

Pct Move

End 2020

Ytd Pct Move

CBOT wheat Wv1

724.75

2.50

0.35

640.50

13.15

CBOT corn Cv1

530.25

-4.00

-0.75

484.00

9.56

CBOT soy Sv1

1285.75

-6.75

-0.52

1311.00

-1.93

Paris wheat Dec BL2Z1

245.25

0.00

0.00

192.50

27.40

Paris maize Nov EMAc1

219.50

0.00

0.00

219.00

0.23

Paris rape Nov COMc1

567.25

0.00

0.00

418.25

35.62

WTI crude oil CLc1

68.56

0.06

0.09

48.52

41.30

Euro/dlr EUR=

1.18

0.00

0.09

1.2100

-2.33

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)

((gus.trompiz@thomsonreuters.com; +33 1 49 49 52 18; Reuters Messaging: gus.trompiz.thomsonreuters.com@reuters.net))