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GRAINS-U.S. corn dips on profit-taking; wheat, soybeans edge higher

GRAINS-U.S. corn dips on profit-taking; wheat, soybeans edge higher

Reuters · 09/14/2022 02:46
GRAINS-U.S. corn dips on profit-taking; wheat, soybeans edge higher

Corn retreats further from more than 2-month high

Ukrainian supply deal uncertainty supports wheat

U.S. railways to halt grain shipments on Thursday

Updates prices, adds analyst comment

By Enrico Dela Cruz

- Chicago corn futures dipped in Asian trading on Wednesday, as traders chose to pocket profits from recent gains spurred by expectations of tight U.S. supplies, while risks of a global economic slowdown fuelled concerns about demand prospects.

The most-traded corn contract on the Chicago Board of Trade (CBOT) Cv1 was down 0.3% at $6.90-3/4 a bushel, as of 0613 GMT, extending losses after prices hit their strongest level since June 27 on Monday.

U.S. corn and soybean supplies will fall to multi-year lows, as hot and dry weather during August in western growing areas cut harvest potential, according to a report released by the U.S. Department of Agriculture on Monday.

But lower demand could offset the tightness in global grain supply, analysts said.

Overall investor sentiment was gloomy following a white-hot U.S. inflation report that fuelled bets for higher interest rates, which could slow down the global economy and dampen demand for commodities.

CBOT soybeans Sv1 edged up 0.2% at $14.81-1/2 a bushel, off a session-high $14.85-1/4.

"The global soybean export supply is still tight, and (importers) will to rely more on the U.S. soybean market," analysts at Huatai Futures in China said in a .

CBOT wheat Wv1 rose 0.5% to $8.64-1/2 a bushel amid concerns over Black Sea supplies in the wake of Russia's criticism of a landmark deal allowing grain shipments from war-ravaged Ukraine.

The United Nations is trying to broker a resumption of Russian ammonia exports through Ukraine, a Western diplomat said on Tuesday, a move that could stabilise that deal allowing Ukrainian food and fertiliser shipments from Black Sea ports.

Some U.S. railroads, meanwhile, will start halting crop shipments on Thursday, a day ahead of a potential work stoppage, an agricultural association and sources at two grain cooperatives said, threatening exports and feed deliveries for livestock.

(Reporting by Enrico Dela Cruz in Manila; Editing by Subhranshu Sahu)