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Wheat rises on strong demand, soybeans supported by China’s COVID-19 easing

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SINGAPORE — Chicago wheat futures inched higher on Tuesday, rising for the first time in four sessions as strong U.S. weekly exports supported the market.

Soybeans gained ground on expectations of a recovery in demand with China gradually easing COVID-19 restrictions, corn prices rose.

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FUNDAMENTALS

* The most-active wheat contract on the Chicago Board of Trade (CBOT) added 0.4% to $7.42 a bushel, as of 0145 GMT. Soybeans gained 0.6% at $14.45-3/4 a bushel and corn rose 0.2% to $6.41-3/4 a bushel.

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* During the week ended Dec. 1, U.S. exporters prepared 334,653 tonnes of wheat for export, beating expectations in a Reuters poll of analysts, according to the U.S. Department of Agriculture (USDA).

* However, ample supplies are likely to keep a lid on prices.

* Russian wheat export prices fell slightly last week amid a record harvest in Russia and active supplies from the Black Sea.

* Australia is expected to produce a bumper year of crops including record wheat production in the current financial year, the government said on Tuesday, despite the impact of widespread flooding in the the country’s eastern region.

* Total winter crop production across the country is forecast to total 62 million tonnes, the second highest on record, according to a report from the federal Australian Bureau of Agricultural and Resource Economics (ABARES).

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* Further easing of COVID-19 quarantine rules in some Chinese cities could increase demand for U.S. commodities, including soybeans.

* U.S. exporters sold 130,000 tonnes of soybeans for delivery to China.

* Corn export inspections of 524,313 tonnes and soybean inspections of 1.72 million tonnes were within trade expectations.

* Commodity funds were net buyers of CBOT soymeal and soybean futures contracts on Monday and net sellers of soyoil, wheat and corn wheat futures, traders said.

MARKET NEWS

* Global stocks and Treasury prices fell on Monday as new evidence of a strong U.S. economy raised fears that interest rates will stay higher for longer, eclipsing China’s easing of pandemic restrictions.

DATA/EVENTS (GMT) 0030 Australia Current Account Balance SA Q3 0030 Australia Net Exports Contribution Q3 0700 Germany Industrial Orders MM Oct 0700 Germany Manufacturing O/P Cur Price SA Oct 0700 Germany Consumer Goods SA Oct 1330 US International Trade Oct (Reporting by Naveen Thukral; Editing by Rashmi Aich)

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