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GRAINS-Soybeans jump 1% to two-week high as U.S. crop faces hot weather

GRAINS-Soybeans jump 1% to two-week high as U.S. crop faces hot weather

Reuters · 07/27/2022 20:37
GRAINS-Soybeans jump 1% to two-week high as U.S. crop faces hot weather

- Chicago soybean futures rose for a fifth consecutive session on Thursday to their highest levels in more than two weeks as hot and dry weather conditions expected in parts of the U.S. Midwest threatened to curb yields.

Wheat gained 1.4% while corn rose 0.9%.


FUNDAMENTALS

* The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was up 0.9% at $14.22-1/2 a bushel, as of 0020 GMT, after climbing earlier in the session to its highest since July 11 at $14.27 a bushel.

* Wheat Wv1 rose 1.4% to $8.01-1/2 a bushel and corn Cv1 gained 0.9% to $6.08-1/4 a bushel.

* A lack of moisture in upcoming forecasts could hurt soybean plants as they develop pods.

* U.S. corn and soybeans are enjoying a shot of seasonably cool weather this week, though a menacing hot and dry forecast for week and beyond has both farmers and traders on edge, Karen Braun, a market analyst for Reuters, wrote in a column.

* "Corn and soybean yield potential is particularly sensitive to the weather in July and August, which is why the market is often glued to every forecast model run this time of year, as each update could potentially enhance or change current sentiment."

* Wheat rose although an agreement to reopen Ukrainian maritime grain exports limited gains.

* Turkish Defence Minister Hulusi Akar unveiled a centre in Istanbul on Wednesday to oversee the export of Ukrainian grains after a landmark U.N. deal last week, with the first shipment expected to depart from Black Sea ports within days.

* Russia and Ukraine signed the deal, brokered by Ankara and the United Nations, on Friday to reopen grain and fertiliser exports that have been blocked by war to ease an international food crisis.

* The Russia-focused Sovecon agriculture consultancy has raised its forecast for the country's July-June 2022/2023 wheat exports by 300,000 tonnes to a record high of 42.9 million tonnes, it said on Wednesday.

* The wheat crop estimate has been upped by 1.7 million tonnes to 80.9 million tonnes, the consultancy added in a

* Indian wheat prices jumped to a record high, despite a ban on exports, amid strong demand and dwindling supply from a crop damaged by heat wave.

* The price rally has reduced chances of India supplying substantial amounts of wheat under government-to-government deals with countries struggling to secure shipments amid the disruption of the war in Ukraine.

* Commodity funds were buyers of CBOT soybeans, soyoil, soymeal and corn futures contracts on Wednesday and sellers of CBOT wheat futures contracts, traders said. COMFUND/CBT


MARKET NEWS

* U.S. equities rose sharply and the dollar lost ground as investors bet the Federal Reserve would slow interest rate hikes following its announcement on Wednesday of an increase in rates in line with expectations. MKTS/GLOB


DATA/EVENTS (GMT)

0900 EU Consumer Confid. Final July

1200 Germany CPI Prelim YY July

1200 Germany HICP Prelim YY July

1230 US GDP Advance Q2

1230 US Initial Jobless Clm Weekly


(Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)

((.thukral@thomsonreuters.com; +65-6870-3829; Reuters Messaging: .thukral.thomsonreuters.com@reuters.))