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SINGAPORE, March 6 (Reuters) – Chicago wheat futures lost more ground on Monday, with prices weighed down by expectations that a deal to export grain from war-torn Ukraine will be extended.
Soybeans slid for the first time in four sessions while corn eased, although losses in both markets were limited by forecasts of lower production in key supplier Argentina.
FUNDAMENTALS
* The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 gave up 0.5% to $7.05 a bushel, as of 0159 GMT. Soybeans Sv1 fell 0.2% to $15.16-1/2 a bushel and corn Cv1 gave up 0.2% to $6.38-3/4 a bushel.
* Turkish Foreign Minister Mevlut Cavusoglu said on Sunday that Ankara is working hard to extend the U.N.-backed initiative that has enabled Ukraine to export grain from ports blockaded by Russia following its invasion.
* Ukraine sees for the 2023/24 July-June season as the winter harvest looks to be larger than expected, albeit smaller than in peacetime, a top agriculture ministry official said.
* Worries over lower output in Argentina following a severe drought have supported global soybean and corn prices.
* A consortium of Argentine agricultural companies said on Friday they had slashed their forecasts for this season’s soybean and corn harvests due to the historic drought and mid-summer frosts, which they warned could cost the country more than $20 billion.
* Traders were staking out positions ahead of the U.S. Agriculture Department’s monthly World Agricultural Supply and Demand Estimates report that will be released on March 8.
* Analysts had forecast reductions in U.S. soybean supplies due to rising demand and a smaller harvest outlook for Argentina.
* In news, China will aim to boost its grain production capacity by 50 million tonnes in 2023, Premier Li Keqiang said on Sunday, while also building storage centres in suburban areas for emergency supplies of daily necessities.
* China is aiming to shore up its food security amid heightened geopolitical risks, which could threaten its heavy reliance on imports of animal feed grains like soybeans.
MARKET NEWS
* Asian shares edged up on Monday while bond markets held their breath ahead of an update on the U.S. rate outlook from the world’s most powerful central banker, and a jobs report that could decide if the next hike needs to be super-sized. MKTS/GLOB
DATA/EVENTS (GMT)
0930 UK All-Sector PMI Feb
1500 US Factory Orders MM Jan
(Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)
((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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