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GRAINS-Soybeans rally falters as market awaits USDA data

GRAINS-Soybeans rally falters as market awaits USDA data

reuters.com · 06/10/2022 06:40
GRAINS-Soybeans rally falters as market awaits USDA data

Soybeans neared record high on Thursday in export-fuelled rally

Corn also eases after 2-week top, wheat also down slightly

USDA report eyed for gauge of U.S. supply, Ukraine war fallout

Updates with European trading, changes byline/dateline

By Gus Trompiz and Naveen Thukral

- Chicago soybean futures edged lower on Friday after nearing an all-time high during an export-fuelled rally, with traders awaiting U.S. government crop forecasts for further direction.

Corn eased from a two-week top reached the previous session, while wheat ticked lower before the U.S. Department of Agriculture's (USDA) monthly world crop forecasts due at 1600 GMT. nL1N2XT2FO

Wider financial markets were also subdued as investors awaited U.S. consumer price data, the latest gauge of inflation pressures that have prompted interest rate rises. MKTS/GLOB

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was down 0.6% at $17.59-1/4 a bushel by 1014 GMT.

On Thursday, the contract reached its highest since September 2012, as it approached an all-time high of $17.89.

"The U.S. continues to see strong export sales of soybeans, bolstering old-crop prices," said Tobin Gorey, director of agricultural strategy at the Commonwealth Bank of Australia.

The USDA on Thursday said weekly old-crop soybean export sales totalled 429,900 tonnes, up 41% from the average of the prior four weeks.

The agency separately announced a spot export sale of 143,000 tonnes of U.S. soybeans, mostly for shipment in 2022/23. nFWN2XW0PS

Brisk export demand has bolstered expectations that the USDA will lower its outlook for U.S. soybean stocks in Friday's supply and demand report.

A drier turn to weather forecasts for parts of the U.S. Midwest have also lent support to soybeans and corn markets by raising early risks about the development of this year's crop.

CBOT corn Cv1 was down 0.7% at $7.67-1/2 a bushel, after reaching its highest since May 24 a day earlier.

CBOT wheat Wv1 was down 0.3% at $10.68-1/4 a bushel but held above Thursday's near one-week low.

Wheat prices have faced pressure from improving weather for U.S. and European crops as winter wheat harvesting gets under way in southern U.S. growing belts.

The market has also been reacting to diplomatic negotiations to allow grain shipments from Ukraine's Black Sea ports, with the outcome uncertain as fighting rages between Russian and Ukrainian forces in eastern Ukraine. nL4N2XX0ID



Prices at 1014 GMT







Last

Change

Pct Move

End 2021

Ytd Pct Move

CBOT wheat Wv1

1068.25

-3.00

-0.28

770.75

38.60

CBOT corn Cv1

767.50

-5.50

-0.71

593.25

29.37

CBOT soy Sv1

1759.25

-9.75

-0.55

1339.25

31.36

Paris wheat BL2c1

385.25

-1.00

-0.26

276.75

39.21

Paris maize EMAc1

331.25

-1.75

-0.53

226.00

46.57

Paris rape COMc1

770.25

-10.00

-1.28

754.00

2.16

WTI crude oil CLc1

122.12

0.61

0.50

75.21

62.37

Euro/dlr EUR=

1.06

0.00

-0.13

1.1368

-6.76

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 Sherry Jacob-Phillips and Emelia Sithole-Matarise)

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