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GRAINS-Corn ticks down, soybeans firm as harvest and demand weighed

GRAINS-Corn ticks down, soybeans firm as harvest and demand weighed

Reuters · 09/14/2022 06:30
GRAINS-Corn ticks down, soybeans firm as harvest and demand weighed

Corn, soybeans 2-1/2 month peaks

USDA supply forecast cuts, rail strike threat underpin prices

Economic worries curb grain markets

Wheat firm 2-month top as Ukraine corridor deal in focus

Updates with European trading, changes byline/dateline

By Gus Trompiz and Enrico Dela Cruz

- Chicago corn futures inched lower on Wednesday while soybeans edged up, with both markets trading 2-1/2 month highs as participants weighed reduced U.S. supply prospects against the risk that an economic slowdown will curb demand.

Wheat was firm, supported by an easing back in the dollar .DXY and uncertainty over an export corridor for Ukrainian grain following Moscow's criticism of the arrangement.

The most-traded corn contract on the Chicago Board of Trade (CBOT) Cv1 was down 0.2% at $6.91-1/4 a bushel by 1018 GMT.

CBOT soybeans Sv1 were up 0.6% at $14.88 a bushel.

U.S. corn and soybean supplies will fall to multi-year lows after hot and dry weather hurt harvest potential, the U.S. Department of Agriculture said on Monday.

The agency's reduced U.S. soybean harvest estimate caught the market by surprise as it contrasted with some favourable field reports in recent weeks.

"The markets continued to absorb (the) USDA report, with some firmness in futures," consultancy Agritel said.

"Rising inflation, combined with an economic slowdown, has led to fears of a decline in global demand," it added in a .

August U.S. inflation figures on Tuesday fuelled bets for higher interest rates, which could slow down the global economy and dampen demand for commodities. MKTS/GLOB

Growth in global oil demand is set to grind to a halt in the fourth quarter as an economic slowdown deepens, the International Energy Agency (IEA) said on Wednesday.

CBOT wheat Wv1 rose 0.5% to $8.64-3/4 a bushel.

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 a corridor deal for Ukrainian grain that has been criticised by Russia.

Some U.S. railroads 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.

Grain markets are also watching for crop production estimates later on Wednesday from Statistics Canada.



Prices at 1018 GMT







Last

Change

Pct Move

End 2021

Ytd Pct Move

CBOT wheat Wv1

864.75

4.25

0.49

770.75

12.20

CBOT corn Cv1

691.25

-1.50

-0.22

593.25

16.52

CBOT soy Sv1

1488.00

9.25

0.63

1339.25

11.11

Paris wheat BL2c1

335.50

-0.75

-0.22

276.75

21.23

Paris maize EMAc1

328.50

-1.75

-0.53

226.00

45.35

Paris rape COMc1

600.25

-6.25

-1.03

754.00

-20.39

WTI crude oil CLc1

87.70

0.39

0.45

75.21

16.61

Euro/dlr EUR=

1.00

0.00

0.46

1.1368

-11.89

Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne





(Reporting by Gus Trompiz in Paris and Enrico Dela Cruz in Manila; Editing by Subhranshu Sahu and David Evans)

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