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SINGAPORE, March 20 (Reuters) – Chicago wheat and corn futures slid on Monday, with prices under pressure after a deal to exports grains from war-torn Ukraine was extended over the weekend, easing some of the concerns over supplies.
Soybeans ticked lower in early Asian trade.
FUNDAMENTALS
* The most-active wheat contract on the Chicago Board of Trade Wv1 fell 0.6% to $7.06-1/4 a bushel, as of 0024 GMT and corn Cv1 lost 0.3% to $6.32-1/2 a bushel.
* Soybeans Sv1 eased 0.1% to $14.75 a bushel.
* The deal allowing the safe Black Sea export of Ukrainian grain was renewed on Saturday for at least 60 days – half the intended period – after Russia warned any further extension beyond mid-May would depend on the removal of some Western sanctions.
* The pact was brokered with Russia and Ukraine by the United Nations and Turkey in July and renewed for a further 120 days in November. The aim was to combat a global food crisis that was fuelled in part by Russia’s Feb. 24, 2022, invasion of Ukraine and Black Sea blockade.
* Brazil’s National Energy Policy Council on Friday raised the country’s mandatory blend of biodiesel in diesel to 12% starting in April, Mines and Energy Minister, Alexandre Silveira said.
* The measure is expected to favour mainly the soybean processing industry, since about 65% of the total biodiesel was produced with soyoil in 2022.
* Large speculators switched to a net short position in Chicago Board of Trade corn futures in the week to March 7, regulatory data released on Thursday showed.
* The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and raised their net long position in soybeans.
MARKET NEWS
* U.S. stock futures rose in Asian trade on Monday in relief at a weekend rescue deal for Credit Suisse, though the mood was nervous and financial shares remained under pressure from contagion fears, even with support from global central banks. MKTS/GLOB
DATA/EVENTS (GMT)
0115 China Loan Prime Rate 1Y, 5Y March
1000 EU Total Trade Balance SA Jan
(Reporting by Naveen Thukral; Editing by Rashmi Aich)
((naveen.thukral@thomsonreuters.com; +65-6870-3829; Reuters Messaging: naveen.thukral.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.
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