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Corn and soybeans steady after slide as weather, demand in focus

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PARIS/SINGAPORE — Chicago corn and soybeans edged higher

on Wednesday, bouncing off one-week lows, but prices remained under pressure

from improving U.S. weather, economic risks and increasing exports from Ukraine.

Wheat also inched up.

Consolidation in crude oil and the dollar, which had moved sharply this week

on global growth concerns centered on China, encouraged the pause in grains.

The most-active corn contract on the Chicago Board of Trade (CBOT) was

up 0.04% at $6.10-1/2 a bushel by 0957 GMT, after hitting its lowest since Aug.

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8 earlier in the session.

CBOT soybeans were up 0.62% at $13.89-1/2 a bushel, after slipping to

their lowest since Aug. 4 on Tuesday.

CBOT wheat inched up 0.06% to $8.03-1/4 a bushel.

Soybeans drew some support from strength in Malaysian palm oil, which

competes with soyoil in food and fuel markets.

Forecasts for rain this week in dry western parts of the U.S. corn and

soybean belt have pressured prices, despite a decline in crop conditions last

week as reported by the U.S. Department of Agriculture (USDA).

“The weather forecasts, favorable to a return of rain, have brought a

relaxing factor. However, the state of the crops remains to be monitored,”

consultancy Agritel said.

Some traders are cautious about a record U.S. soybean yield forecast by the

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USDA on Friday given mixed growing conditions this summer.

Economic risks, underscored by the highest inflation reading in 40 years in

Britain, have raised doubts about demand for crops, although traders also see

scope for importers to take advantage of lower prices to cover short-term needs.

Supply fears related to Russia’s invasion of Ukraine have been eased by

initial grain shipments under a safe-passage agreement.

“Ukrainian ships are moving out, which is positive for supplies,” said one

Singapore-based grains trader.

Four more ships have left Ukrainian ports carrying sunflower meal, sunflower

oil and corn, Turkey’s defense ministry said on Wednesday.

Wheat prices have also been curbed by a bumper harvest in Russia, despite

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uncertainty over how much the country will export this season.

Consultancy Sovecon raised its forecast for Russia’s 2022 wheat crop to 94.7

million tonnes from 90.9 million tonnes on Tuesday.

Prices at 0957 GMT

Last Change Pct End Ytd Pct

Move 2021 Move

CBOT wheat 803.25 0.50 0.06 770.75 4.22

CBOT corn 610.50 0.25 0.04 593.25 2.91

CBOT soy 1389.50 8.50 0.62 1339.25 3.75

Paris wheat 329.25 -2.75 -0.83 276.75 18.97

Paris maize 323.00 -4.75 -1.45 226.00 42.92

Paris rape 625.50 1.00 0.16 754.00 -17.04

WTI crude oil 86.71 0.18 0.21 75.21 15.29

Euro/dlr 1.02 0.00 0.08 1.1368 -10.47

Most active contracts – Wheat, corn and soy US cents/bushel,

Paris futures in euros per tonne

(Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by

Subhranshu Sahu and Devika Syamnath)

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