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Chicago grains ease as firm dollar, China demand weigh

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PARIS/SINGAPORE — Chicago corn, wheat

and soybeans edged lower on Monday, curbed by a rebound in the

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dollar and renewed doubts about Chinese demand after a rise in

COVID-19 cases in the world’s second-largest economy.

Grain markets were also monitoring discussions over renewing

an export corridor from war-torn Ukraine before a deadline next

weekend, with Moscow citing constructive talks with United

Nations officials while saying agreement was yet to be reached.

The most-active soybean contract on the Chicago Board of

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Trade (CBOT) was down 0.5% at $14.42-1/2 bushel by 1252


CBOT wheat edged down 0.4% to $8.10-1/2 a bushel and

corn fell 0.4% to $6.55-1/4 a bushel.

Grain markets were buoyed on Friday by a weaker dollar and

news that China would ease some coronavirus-related


However, the announcement of the highest number of local

COVID-19 cases in China in over six months and worries in crude

oil markets about soft Chinese demand cooled sentiment in crop

markets too.

China is the world’s largest soybean importer.

Comments by a U.S. Federal Reserve official about interest

rates also dampened investor hopes sparked by lower than

expected October inflation.

Wheat markets have been capped by competitive prices of

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Russian wheat as well as hopes the U.N.-backed shipping corridor

from Ukraine will be prolonged.

Saudi state buyer SAGO on Monday said it had bought just

over 1 million tonnes of wheat, much more than it had sought in

the tender, with traders suggesting Russian wheat may be used to

cover a large part of the optional-origin purchase.

The ongoing talks over the Black Sea grain corridor were

part of a busy geopolitical agenda, with the U.S. and Chinese

presidents meeting on Monday ahead of a summit of G20 nations.

The wheat market was also wrestling with Argentine supply.

The country’s wheat exports this season will not quite reach

half of last season’s, the Rosario Grains Exchange said on


The return of rain may provide some pre-harvest relief to

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drought-affected wheat crops, although later-developing corn and

soybeans may benefit more, traders said.

Prices at 1252 GMT

Last Chang Pct End Ytd Pct

e Move 2021 Move

CBOT wheat 810.50 -3.25 -0.40 770.75 5.16

CBOT corn 655.25 -2.75 -0.42 593.25 10.45

CBOT soy 1442.50 -7.50 -0.52 1339.25 7.71

Paris wheat 325.75 -1.50 -0.46 276.75 17.71

Paris maize 318.25 -1.75 -0.55 226.00 40.82

Paris rape 629.00 -7.25 -1.14 754.00 -16.58

WTI crude oil 87.79 -1.17 -1.32 75.21 16.73

Euro/dlr 1.03 0.00 -0.37 1.1368 -9.27

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)



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