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Chicago soybeans set for weekly gain on Chinese demand prospect

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PARIS/SINGAPORE — Chicago soybean

futures rose more than 1% on Friday, with prices on track to end

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the week on a positive note, as expectations of strong Chinese

demand underpinned the market.

Wheat was also higher and the market is set for its first

weekly rise since early October on concerns over Black Sea

supplies and excessive rains damaging the Australian crop.

The most-active soybean contract on the Chicago Board of

Trade (CBOT) was up 1.1% at $14.53-1/4 a bushel, as of

1304 GMT, and the market has gained 4% so far this week.

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Wheat climbed 1.6% on Friday to $8.53-3/4 a bushel,

putting this week’s rise at 3% after four weekly losses while

corn was up 0.6% at $6.83-1/4, just above last Friday’s

close.

The soybean market has been supported by expectations of

strong demand from top importer China.

However, the U.S. Department of Agriculture (USDA) said U.S.

soybean export sales in the week ended Oct. 27 totalled 830,200

tonnes, at the low end of a range of trade expectations.

Corn export sales at 372,200 tonnes were in line with

expectations.

Traders were also digesting rising private crop estimates.

Commodity brokerage StoneX late on Wednesday raised its estimate

of the average U.S. corn yield to 174.5 bushels per acre (bpa),

from 173.9 last month.

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Uncertainty about grain exports from the war-torn Black Sea

region and adverse weather conditions in Australia supported

wheat.

“We are sticking with our belief that prices will not

lastingly drop back to their pre-war levels in the short term.

After all, this episode has illustrated that Russia views the

deal as political leverage and could terminate it at any time in

the event of any renewed escalation in the conflict with

Ukraine,” Commerzbank said in a note.

Support came from flooding and excessive rains across key

parts of Australia’s wheat-growing areas which resulted in

extensive damage to what was expected to be a record bin-busting

high quality crop just a few weeks ago, exacerbating concerns

over world food supplies.

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While Australia is still on track for a third year of bumper

harvest, about half of the crop grown on its eastern grain belt

– known for premium hard wheat – is likely to be reduced to

animal feed, although the extent of the damage will be known

after waters recede, traders, analysts and farmers said.

In France, the European Union’s largest grain producer, the

warmest October in 40 years has accelerated crop development so

much that it has left them fragile to sudden frosts later in the

season, French crop institute Arvalis warned on Friday.

Prices at 1304 GMT

Last Change Pct

Move

CBOT wheat 853,75 13,25 1,58

CBOT corn 683,25 4,00 0,59

CBOT soy 1453,25 16,25 1,13

Paris wheat 342,75 2,00 0,59

Paris maize 346,00 -0,75 -0,22

Paris rapeseed 664,75 4,75 0,72

WTI crude oil 91,51 3,34 3,79

Euro/dlr 0,9792 0,00 0,42

Most active contracts – Wheat, corn and soy US

cents/bushel, Paris futures in euros per tonne

(Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips

and Alison Williams)

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