GRAINS-Soy, grains climb as energy prices rise, dollar cools

By 1:10 p.m. CDT (1810 GMT), Chicago Board of Trade January soybean futures SF3 were up 25-1/2 cents at $14.62-1/2 per bushel after reaching $14.65-1/2, the contract’s highest since Sept. 22. Benchmark December soyoil BOZ2 touched its highest since June 10. Soyoil is used to make biodiesel fuel.

CBOT December wheat WZ2 was up 8 cents at $8.48-1/2 a bushel and December corn CZ2 was up 1-3/4 cents at $6.81.

Spot U.S. crude oil futures CLc1 were up $4 a barrel, or 4.6%, lifting grain futures.

“Crude is up and the dollar is sharply lower, so that is helping everything. It’s the energy, and the bean oil blend into diesel fuel,” said Sherman Newlin, an analyst with Risk Management Commodities.

Prospects for China to ease some of its COVID-19 restrictions lent support to soybeans and other markets, despite the lack of any announced changes. China is the world’s largest soy importer.

“There are rumors that China could possibly change their Covid policy and open back up, so there is thinking that maybe we could sell a few more beans to China that way,” Newlin said.

See also  Venba, a video game about the emotional resonance of food | Games

A former Chinese disease control official said substantial changes to the country’s COVID-19 policy could take place soon.

CBOT wheat rose on technical buying and end-of-week short covering, along with the weaker U.S. dollar. Uncertainty about grain exports from the war-torn Black Sea region and adverse weather conditions in Australia lent support as well.

Russia wants the West to ease restrictions on state agriculture lender Rosselkhozbank to facilitate Russian grain exports, according to four sources familiar with the request, made during talks to extend a deal on food shipments from Ukraine.

In France, the European Union’s largest grain producer, the warmest October in 40 years has accelerated crop development so much that it has left them fragile to sudden frosts later in the season, French crop institute Arvalis warned on Friday.

(Additional reporting by Naveen Thukral in Singapore and Sybille de La Hamaide in Paris; editing by Alison Williams, Kirsten Donovan)

((Julie.ingwersen@thomsonreuters.com; 1-313-484-5283; Reuters Messaging: julie.ingwersen.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


Source link

We will be happy to hear your thoughts

Leave a reply

 
financetin
Logo
%d bloggers like this: