Soybeans extend gains on Argentina weather, wheat firms

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SINGAPORE/PARIS — Chicago soybean

futures rose on Wednesday, with a lack of rains in Argentina

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underpinning the market, although slowing U.S. sales to China

limited gains.

Wheat rose on concerns over crop damage in the United

States.

“Doubts around Argentina’s crops continue. Lower production

estimates will come; the question is how much?” the Hightower

said in a report.

“Planting is well behind, with only 50.6% completed at of

Dec. 15. Conditions are reported at 19% good/excellent versus

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85% last year. Some areas that would normally require replanting

may be abandoned for this year.”

The most-active soybean contract on the Chicago Board of

Trade (CBOT) rose 0.4% to $14.84-1/4 a bushel, as of 1030

GMT, wheat added 0.2% to $7.53-3/4 a bushel and corn

gained 0.2% to $6.53 a bushel.

Rains in parts of Argentina’s corn and soybean growing areas

over the weekend have boosted crop prospects, but the world’s

leading exporter of processed soy has been hit by a historic

drought that has prevented many farmers from planting.

Brazil, the world’s biggest soybean exporter, is far less

impacted by dry conditions, and is expected to begin harvesting

soybeans by late-January.

China’s November soybean imports from the United States fell

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6.9% from a year earlier, data showed on Tuesday, after low U.S.

river levels slowed shipping of beans to ports for export.

The world’s biggest soybean buyer, China, imported 3.38

million tonnes of the oilseed from the United States last month,

down from 3.63 million tonnes a year earlier, according to the

General Administration of Customs.

For wheat, temperatures in the United States dropping well

below freezing could damage winter wheat crops in parts of the

Great Plains that haven’t received protective snowcover.

Russia has set its fertilizer export quota at 11.8 million

tonnes for January-May to ensure enough supply of crop and soil

nutrients to farmers at home, the government said in a statement

on Wednesday.

Commodity funds were net buyers of CBOT soybeans, soyoil,

corn, wheat and soymeal futures contracts on Tuesday, traders

said.

Prices at 1030 GMT

Last Change Pct

Move

CBOT wheat 752.25 1.75 0.23

CBOT corn 653.00 1.00 0.15

CBOT soy 1484.25 5.75 0.39

Paris wheat 298.25 1.75 0.59

Paris maize 285.00 1.75 0.62

Paris rapeseed 559.75 3.50 0.63

WTI crude oil 77.26 1.03 1.35

Euro/dlr 1.0617 0.000 -0.038

Most active contracts – Wheat, corn and soy US

cents/bushel, Paris futures in euros per tonne

(Reporting by Naveen Thukral; Editing by Rashmi Aich and

Shailesh Kuber)