PARIS/SINGAPORE — Chicago soybean, corn and wheat
futures eased on Monday, curbed by worries that rising COVID-19 cases in China
could dent commodity demand in the country.
A jump in the dollar, as uncertainty over Chinese activity pushed investors
towards perceived safe-haven assets, also weighed on U.S. grain futures by
making them more expensive overseas.
Beijing’s most populous district urged residents to stay at home on Monday,
as the city’s COVID case numbers rose, while at least one district in Guangzhou
was locked down for five days.
“The increase is COVID-19 cases in China is seen as a bearish demand factor
for food and energy consumption,” market research firm Hightower said in a
Crude oil and share prices also fell.
The soybean market is particularly sensitive to Chinese news as the country
dominates global imports of the oilseed.
The risk of further local lockdowns in China offset signs of brisk recent
demand for U.S. beans, including just above 3 million tonnes of sales shown in
last Thursday’s weekly export sales report from the U.S. Department of
The stronger dollar underscored a lack of competitiveness for U.S. wheat as
Russian exports pick up and a 120-day extension to a grain shipping corridor
from Ukraine is set to maintain flows from the war-torn country.
The most-active soybean contract on the Chicago Board of Trade (CBOT)
was down 0.3% at $14.24-1/2 a bushel by 1221 GMT.
CBOT wheat was down 1.4% at $8.23-3/4 a bushel while corn fell
0.6% to $6.63-1/2 a bushel.
Grain investors were also monitoring weather in Argentina. A drier week was
forecast after widespread showers last week in the drought-hit exporting
Large speculators cut their net long position in CBOT corn futures in the
week to Nov. 15, regulatory data released on Friday showed.
Prices at 1221 GMT
Last Change Pct End Ytd Pct
Move 2021 Move
CBOT wheat 810.75 -11.25 -1.37 770.75 5.19
CBOT corn 663.50 -4.25 -0.64 593.25 11.84
CBOT soy 1424.50 -3.75 -0.26 1339.25 6.37
Paris wheat 325.75 0.00 0.00 276.75 17.71
Paris maize 306.75 0.00 0.00 226.00 35.73
Paris rape 601.75 -8.50 -1.39 754.00 -20.19
WTI crude oil 79.86 -0.22 -0.27 75.21 6.18
Euro/dlr 1.02 -0.01 -0.88 1.1368 -9.98
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
Rashmi Aich and Chizu Nomiyama)