Home Business Wheat hits one-week high on Ukrainian export worries; soybeans firm

Wheat hits one-week high on Ukrainian export worries; soybeans firm

7 min read
Comments Off on Wheat hits one-week high on Ukrainian export worries; soybeans firm
0
26


Article content

SINGAPORE — Chicago wheat rose for a second consecutive session on Tuesday, fueled by concerns over exports from the Black Sea region after a weekend attack temporarily shut down a key Ukrainian port, disrupting grain shipments.

Soybeans edged up after closing lower on Monday, although rains in Argentina and forecasts of wet weather in Brazil limited the gains.

Article content

“Russia’s military strikes near Ukraine’s grain export ports have caused problems for loading ships,” said Tobin Gorey, director of agricultural strategy at the Commonwealth Bank of Australia.

Advertisement 2

Article content

The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.9% at $7.61-1/4 a bushel, as of 0410 GMT, after climbing to its highest since Dec. 5 at $7.64 earlier in the session.

Soybeans rose 0.3% to $14.64-1/2 a bushel, having lost 1.6% on Monday, and corn climbed 0.2% to $6.55-1/4 a bushel, extending gains.

News that the Ukrainian port of Odesa suspended operations on Sunday after Russian strikes on energy supply put attention back on risks to wartime grain shipments. The port resumed activity on Monday.

Soybeans are being underpinned by strong U.S. exports to China, the world’s biggest buyer of the oilseed. But investor sentiment cooled as China faced an upturn in infections while it rolls back COVID-19 restrictions.

Advertisement 3

Article content

In South America, part of Argentina’s drought-hit farm belt received significant rainfall over the weekend.

The sowing of Brazil’s 2022/23 soybean crop has reached 95% of the estimated area, slightly below last year’s level of 96%, agribusiness consultancy AgRural said on Monday, as producers hope for rains to secure good yields.

Growers are still alert about the poor distribution of rainfall, though no severe losses have been registered so far and forecasts point to showers covering much of the country in the coming days, AgRural said.

The U.S. Agriculture Department said that export inspections of wheat totalled 218,460 tonnes and export inspections of corn totalled 505,104 tonnes in the week ended Dec. 8.

Advertisement 4

Article content

Soybean export inspections totalled 1.840 million tonnes. That was down from 2.080 million a week earlier and in line with trade forecasts.

China’s 2022 soybean crop jumped almost 24%, while corn and wheat output also saw small increases, official data showed on Monday. Soybean output rose 23.7% to 20.3 million tonnes, as the acreage planted with the oilseed jumped 21.7%.

Commodity funds were net buyers of CBOT wheat, corn and soyoil futures contracts on Monday, traders said. The funds were net sellers of soybean and soymeal futures. (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)

Advertisement

Comments

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.



Source link

Load More Related Articles
Load More By 
Load More In Business
Comments are closed.

Check Also

Insurers hit with thousands of claims as rains soak New Zealand

Article content Major insurers operating in New Zealand including Insurance Australia Grou…