GRAINS-Soybeans firm on demand optimism, wheat faces pressure from Black Sea supplies

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Expectations of recovery in Chinese demand support
soybeans

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Record Russia wheat crop poses stiff competition for U.S.

(Adds quote, updates prices)

By Naveen Thukral

SINGAPORE, Dec 8 (Reuters) – Chicago soybean futures
ticked higher on Thursday, gaining more ground as expectations
of demand recovery from top importer China, amid easing COVID-19
curbs and dryness in Argentina, underpinned the market.

Wheat dipped after last session’s strong gains as prices
were weighed down by record Russian supplies, while corn firmed.

“Talk of improving demand from China plus further
indications of dry soils in Argentina helped support the
buying,” Hightower said in a report.

The most-active soybean contract on the Chicago Board of
Trade (CBOT) added 0.3% to $14.76-1/2 a bushel, as of 0259
GMT, while wheat lost 0.2% to $4.78-1/4 a bushel. Corn
rose 0.2% to $6.42-3/4 a bushel.

Soybeans are being supported by optimism that easing
COVID-19 lockdown measures in China will fuel further exports.

China’s November imports of soybeans fell 14% on the year to
7.35 million tonnes, customs data showed on Wednesday, as
logistics woes in top supplier the United States helped confound
expectations for a significant rise.

Argentina soybean sales surged last week to 74.2% of the
current harvest, helped by a preferential exchange rate, though
sales trailed the totals seen at the same point last year, the
government said Wednesday.

Export demand for U.S. wheat has been strong this week,
though U.S. wheat remains expensive compared to Black Sea
supplies.

Russia-focused agriculture consultancy Sovecon said on
Wednesday that it had raised its forecast for Russia’s 2022/23
July-June wheat exports to 43.9 million tonnes from 43.7 million
tonnes due to current active shipments.

Forecasts for a record crop in Australia have also eased
global supply concerns and added weight to U.S. wheat markets.

Commodity funds were net buyers of CBOT wheat, soybean,
soymeal and corn futures contracts on Wednesday and net sellers
of soyoil futures, traders said.
(Reporting by Naveen Thukral; editing by Uttaresh.V)
((naveen.thukral@thomsonreuters.com; +65-6870-3829; Reuters
Messaging: naveen.thukral.thomsonreuters.com@reuters.net))

Keywords: GLOBAL GRAINS/ (UPDATE 1)

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