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(Updates with closing U.S. prices)
By Julie Ingwersen
CHICAGO, Nov 17 (Reuters) – U.S. wheat futures dropped
to a 2-1/2-month low on Thursday after the United Nations
announced an agreement to extend a grain corridor for exports
from war-torn Ukraine.
Soybean futures fell on worries about demand as top global
buyer China struggles with COVID-19 lockdowns. But corn turned
higher as strong weekly U.S. export sales data offset early
pressure from news of the Black Sea grain export deal.
Chicago Board of Trade December wheat
10-3/4 cents at $8.06-3/4 per bushel after dipping to $7.93-3/4,
the contract’s lowest since Sept. 1.
CBOT January soybeans
$14.17 per bushel while December corn
cents at $6.67-1/2 a bushel.
The United Nations Secretary General said he welcomed an
agreement by all parties to extend the grain deal, which has
allowed some 10 million tonnes of grain to be shipped from
Ukrainian ports since August.
“The Black Sea corridor is the dominant news item,
especially for the wheat,” said Jack Scoville, market analyst
with the Price Futures Group in Chicago.
News of the deal also pressured corn in early moves, given
that Ukraine is a major global supplier of corn as well as
wheat. But CBOT corn futures pared losses and turned higher
after the U.S. Department of Agriculture reported U.S. corn
export sales in the week to Nov. 10 at more than 1.1 million
tonnes, near the high end of trade expectations.
Soybeans followed as U.S. crude futures
than $3 a barrel on rising numbers of COVID-19 cases in China
that could impact demand for commodities. China is the world’s
largest buyer of soybeans as well as crude oil. [O/R]
The bean market was also pressured by weakness in soyoil
soyoil’s role as the main U.S. feedstock for biodiesel fuel.
The China jitters, coupled with forecasts for beneficial
rains in some soy areas of Brazil, offset support from
larger-than-expected weekly U.S. soybean exports totalling more
than 3 million tonnes. [EXP/SOY]
“The bean sales were really good, but the beans are being
affected by weather in South America and worries about Chinese
demand moving forward,” Scoville said.
In other news, the International Grains Council trimmed
its forecast for 2022/23 global wheat production by one million
tonnes, to 791 million tonnes, and maintained its 2022/23 world
corn crop outlook at 1.166 billion tonnes.
(Reporting by Julie Ingwersen in Chicago; Additional reporting
by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing
by Vinay Dwivedi and Grant McCool)
((Julie.ingwersen@thomsonreuters.com; 1-313-484-5283; Reuters
Messaging: julie.ingwersen.thomsonreuters.com@reuters.net))
Keywords: GLOBAL GRAINS/ (UPDATE 3, PIX)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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