PARIS/SINGAPORE — Chicago soybean
futures rose more than 1% on Friday, with prices on track to end
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.
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
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
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.
Uncertainty about grain exports from the war-torn Black Sea
region and adverse weather conditions in Australia supported
“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.
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
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)