SPY447.19+1.32 0.30%
DIA352.50-0.35 -0.10%
IXIC15,021.81+124.47 0.84%

GRAINS-Wheat ticks down after two-week high

reuters.com · 09/24/2021 09:04
GRAINS-Wheat ticks down after two-week high

Corn, soybeans also inch down

Wider markets encourage consolidation

Grain traders weigh U.S. harvest, export demand

Updates with European trading, changes byline/dateline

By Gus Trompiz and Naveen Thukral

- Chicago wheat futures inched lower on Friday, consolidating after a two-week high as the market assessed mixed global production prospects and brisk import demand.

Corn also ticked down, following a one-week top on Thursday, as supply pressure from the U.S. harvest countered background support from reduced stocks.

Soybeans similarly edged lower.

An easing in share prices and consolidation in crude oil after gains this week also encouraged the pause in grain markets.

The most-active wheat contract on the Chicago Board Of Trade (CBOT) Wv1 was down 0.3% at $7.15-3/4 a bushel by the end of the overnight session.

It earlier set a new two-week high at $7.19-3/4 but failed to break clear of Thursday's trading range.

A run of tenders by importers, harvest setbacks in the northern hemisphere and rumours about further Russian export restrictions all supported wheat futures this week, according to traders. GRA/TEND

"Rumours of Russian export restrictions are further tightening the outlook for global milling quality wheat and importing countries have a lot to buy," British merchant ADM Agriculture Ltd said in a note.

Top wheat exporter Russia has already introduced a variable export duty and there has been market chatter about how it could apply plans for an export volume quota in the second half of the season.

However, prospects for a large harvest in Australia have tempered global supply concerns.

Trade sources told Reuters that China has been making big advance purchases of the next Australian crop. nL4N2QO1TF

CBOT soybeans Sv1 were down 0.2% at $12.81-3/4 a bushel, while corn Cv1 eased 0.5% to $5.26-1/2.

The International Grains Council on Thursday raised its forecast for the 2021/22 global corn crop, reflecting an improved outlook for the United States and Ukraine. nL1N2QP101

Traders were waiting for a clearer picture of the U.S. corn and soybean harvest as field work gets going in the U.S. Midwest.

Export demand is also being watched after a recent slowdown in U.S. shipments following storm disruptions to Gulf Coast terminals.



Prices at 1249 GMT







Last

Change

Pct Move

End 2020

Ytd Pct Move

CBOT wheat Wv1

715.75

-2.00

-0.28

640.50

11.75

CBOT corn Cv1

526.50

-2.75

-0.52

484.00

8.78

CBOT soy Sv1

1281.75

-2.50

-0.19

1311.00

-2.23

Paris wheat Dec BL2Z1

251.25

-0.75

-0.30

192.50

30.52

Paris maize Nov EMAc1

222.00

0.25

0.11

219.00

1.37

Paris rape Nov COMc1

615.25

0.25

0.04

418.25

47.10

WTI crude oil CLc1

73.18

-0.12

-0.16

48.52

50.82

Euro/dlr EUR=

1.17

0.00

-0.24

1.2100

-3.24

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 Ramakrishnan M.)

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