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GRAINS-Corn, wheat firm on crop risks; soyoil at new high

reuters.com · 04/29/2022 07:10
GRAINS-Corn, wheat firm on crop risks; soyoil at new high

Adverse U.S. weather adds to supply fears over Ukraine war

Dollar eases from 20-year high

Soyoil at new record, Indonesia export halt roils veg oil sector

Updates with European trading, changes byline/dateline

By Gus Trompiz and Naveen Thukral

- Chicago corn inched up on Friday to hold near a decade high, while wheat regained ground as adverse U.S. crop weather added to concerns about supply stemming from Russia's invasion of Ukraine.

Soyoil rose to a new record as Indonesia's palm oil export ban continued to roil edible oil markets already grappling with the loss of Ukrainian sunflower supplies.

The dollar eased after a 20-year high on Thursday, lending some support to grains, although investors were also weighing demand risks, like in other commodity markets, as global inflation and renewed coronavirus outbreaks in China threaten growth prospects. FRX/ MKTS/GLOB

The most-active corn contract Cv1 on the Chicago Board of Trade (CBOT) was up 0.1% at $8.14-1/2 a bushel, as of 1058 GMT, near Thursday's peak of $8.19-3/4 that was its highest since August 2012.

"While geopolitics and climate risk are intertwined, nervousness remains on the grain market," consultancy Agritel said.

Weather forecasts continued to show cool, wet weather in much of the U.S. corn belt for the week ahead, keeping attention on planting delays.

Dry weather in central Brazil was also raising concerns about the country's main corn crop, which like the later U.S. harvest is seen as critical to help offset disruption to Ukrainian exports.

CBOT wheat Wv1 was up 1% at $10.97 a bushel, recovering from a fall on Thursday when sluggish U.S. exports and forecasts for some rain for parched winter wheat zones pressured prices.

But persisting drought in part of the U.S. Plains and curtailed supply from Ukraine were expected to keep wheat markets underpinned.

"There is no reason for wheat prices to decline," said a senior executive with an international trading company. "We are seeing supply constraints as well as strong demand."

CBOT soybeans Sv1 were up 0.9% at $16.99-1/4, buoyed by the renewed rally in soyoil BOv1, which set a new record at 87.65 cents per lb before edging down.

Indonesia should be able to tackle its cooking oil shortage in the next few weeks and lift an export ban on palm oil and its refined products in May, an industry body said on Thursday.

But vegetable oil markets are still digesting Jakarta's last-minute policy U-turn that extended the scope of the embargo. nL2N2WQ04P



Prices at 1058 GMT







Last

Change

Pct Move

End 2021

Ytd Pct Move

CBOT wheat Wv1

1097.00

11.25

1.04

770.75

42.33

CBOT corn Cv1

814.50

1.00

0.12

593.25

37.29

CBOT soy Sv1

1699.25

14.50

0.86

1339.25

26.88

Paris wheat BL2c1

413.75

-2.75

-0.66

276.75

49.50

Paris maize EMAc1

349.50

0.50

0.14

226.00

54.65

Paris rape COMc1

1000.00

-25.25

-2.46

754.00

32.63

WTI crude oil CLc1

106.52

1.16

1.10

75.21

41.63

Euro/dlr EUR=

1.06

0.01

0.68

1.1368

-7.06

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, Sherry Jacob-Phillips and Krishna Chandra Eluri)

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