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Wheat eases on supply prospects; China COVID woes cap soybean gains

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KUALA LUMPUR/PARIS — Chicago wheat

prices edged down on Wednesday, hit by prospects of more

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supplies from the European Union, while a rise in COVID-19 cases

in China limited gains on soybeans.

French wheat sales to China and talk of Polish or German

wheat being booked in the United States are creating an

unexpected wave of demand for EU supplies after exports had been

curbed by Russian competition in recent weeks, traders said.

“Ideas that some European wheat ‘pencils in’ to being

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exported to the U.S. East Coast helped to pressure the market,”

market research firm Hightower said in a report.

Talks of a record crop from Russia helped add to the bearish

tone, it added.

The most-active wheat contract on the Chicago Board of Trade

(CBOT) slipped 0.65% to $8.05-1/4 a bushel by 1139 GMT.

Soybeans rose 0.1% to $14.31 a bushel, and corn

rose 0.3% to $6.61.

The market will be closed on Thursday for Thanksgiving.

Soybean futures are still holding a risk premium for

potential weather problems in Brazil and Argentina, which have

been plagued by dry conditions, according to Hightower.

“The situation in Argentina remains catastrophic as a result

of the continuing drought. After having impacted wheat

production, corn and soybean sowings are well behind a normal

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year,” consultancy Agritel said in a note.

Rising COVID-19 cases in China deepened worries about the

economy and dimming hopes for a quick reopening, raising

concerns that it could also dent the country’s commodities

demand, especially for soybeans.

Corn futures saw pressure from wheat and a lack of fresh

news.

Brazil’s National Association of Grain Exporters said on

Tuesday the country’s corn exports could jump exponentially next

year if farmers harvest a full crop and Chinese demand is

strong.

Workers at the largest U.S. rail union voted against a

tentative contract deal reached in September, raising the

possibility of a year-end strike that could cause significant

damage to the country’s economy and strand vital shipments of

food and fuel.

Prices at 1139 GMT

Last Change Pct

Move

CBOT wheat 805.25 -5.25 -0.65

CBOT corn 661.00 1.75 0.27

CBOT soy 1431.00 1.25 0.09

Paris wheat 328.75 -4.75 -1.42

Paris maize 304.25 -1.75 -0.57

Paris rapeseed 596.75 -8.00 -1.32

WTI crude oil 79.05 -1.90 -2.35

Euro/dlr 1.0311 0.00 0.09

Most active contracts – Wheat, corn and soy US

cents/bushel, Paris futures in euros per tonne

(Reporting by Mei Mei Chu in Singapore and Sybille de La

Hamaide in Paris; Editing by Uttaresh.V, Rashmi Aich and Shounak

Dasgupta)

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