PARIS/SINGAPORE — Chicago soybean, corn and wheat
futures drifted lower on Wednesday as participants assessed weather outlook for
South American crops while awaiting broader direction from a U.S. Federal
Reserve interest rate decision.
Demand remained in focus after a series of U.S. soybean export sales to
China and with a wheat import tender being held by Algeria.
The most-active soybean contract on the Chicago Board of Trade (CBOT)
was down 0.6% at $14.71-1/4 a bushel by 1120 GMT, after gaining 1.6% on
Tuesday when it approached a three-month peak.
“Today it is the Fed that will be closely followed,” consultancy Agritel
said in a note.
“Soybeans were up in Chicago yesterday amid good export activity. However,
any rise could be limited by record production prospects in Brazil and
beneficial rains in Argentina in recent days.”
Private exporters reported the sale of 140,000 tonnes of U.S. soybeans to
unknown destinations in the 2023/24 marketing year, the U.S. Department of
Agriculture said on Tuesday.
But traders are weighing whether a recent upturn in demand from China may be
curbed when Brazil’s expected bumper harvest arrives on the market from January.
Drought in Argentina was still a risk for international corn and soybean
supply, with the benefit of showers last weekend potentially limited by a hot
week ahead, analysts said.
CBOT wheat was down 1.3% at $7.41-1/4 a bushel and corn was off
0.7% at $6.48-3/4 a bushel.
The resumption of sailings on Tuesday from Odesa, after the Ukrainian port
had suspended operations on Sunday after Russian strikes on energy supplies,
tempered worries about renewed war disruption to Black Sea trade.
Wheat traders were also watching for the outcome of Algeria’s tender on
Wednesday to see if war risks and the onset of winter weather would disadvantage
offers of Russian and Ukrainian wheat.
Grains like wider financial markets were bracing for the Federal Reserve’s
policy decision later on Wednesday, with investors waiting to see if the central
bank will slow its pace of interest rate hikes to curb inflation.
Prices at 1120 GMT
Last Change Pct End Ytd Pct
Move 2021 Move
CBOT wheat 741.25 -9.50 -1.27 770.75 -3.83
CBOT corn 648.75 -4.75 -0.73 593.25 9.36
CBOT soy 1471.25 -8.50 -0.57 1339.25 9.86
Paris wheat 301.25 -4.25 -1.39 276.75 8.85
Paris maize 284.00 -3.50 -1.22 226.00 25.66
Paris rape 556.50 -6.75 -1.20 754.00 -26.19
WTI crude oil 76.04 0.65 0.86 75.21 1.10
Euro/dlr 1.07 0.00 0.19 1.1368 -6.32
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
Subhranshu Sahu and Uttaresh.V and David Evans)