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U.S. wheat exports lacklustre on Black Sea competition
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Soybeans firm on hopes of strong Chinese demand, corn down
(Add quote in paragraph 3, updates prices)
By Naveen Thukral
SINGAPORE, Dec 2 (Reuters) – Chicago wheat futures lost
more ground on Friday and were set for a fourth straight weekly
drop, pressured by ample Black Sea supplies that are giving
stiff competition to U.S. exporters.
Soybeans inched higher after the previous session’s deep
losses, while corn fell.
“Very weak export news plus a lack of a major exporter
production problem, except Argentina, has helped to pressure
(prices),” Hightower said in a report.
The most-active wheat contract on the Chicago Board of Trade
(CBOT)
soybeans
gave up 0.1% to $6.60 a bushel.
For the week, wheat is down around 2.5%, corn has dropped
1.7% and soybeans are little changed.
A record wheat production in Russia, the world’s biggest
exporter, and ample supplies elsewhere from the Black Sea region
are adding pressure on U.S. futures.
The U.S. Agriculture Department (USDA) said export sales of
wheat totalled 162,500 tonnes in the week ended Nov. 24, well
below the low end of analysts’ forecasts that ranged from
300,000 to 725,000 tonnes.
The USDA reported weekly corn export sales of 632,700
tonnes. The market had expected 475,000 tonnes to 1.1 million
tonnes.
The soybean market dropped on Thursday after the U.S.
government proposed smaller-than-expected biofuels blending
requirements.
The U.S. Environmental Protection Agency proposed smaller
increases than traders had expected in the amount of ethanol and
other biofuels that oil refiners must blend into their fuel over
the next three years.
Production of renewable diesel, which can be made from
soyoil, is growing, “but not at the unrealistic pace expected by
fund managers,” StoneX chief commodities economist Arlan
Suderman said.
Soybeans and wider commodity markets had been underpinned in
recent sessions by signs China was softening its tone on
COVID-19 rules after rare public protests in the world’s
second-largest economy.
Argentina’s wheat production outlook is likely to face more
cuts due to lower-than-expected yields, the Buenos Aires grains
exchange said on Thursday, as the harvest of the grains advances
in the midst of a prolonged drought.
Commodity funds were net buyers of CBOT soymeal futures
contracts on Thursday and net sellers of soybean, soyoil, corn
and wheat futures, traders said.
(Reporting by Naveen Thukral; Editing by Rashmi Aich and
Subhranshu Sahu)
((naveen.thukral@thomsonreuters.com; +65-6870-3829; Reuters
Messaging: naveen.thukral.thomsonreuters.com@reuters.net))
Keywords: GLOBAL GRAINS/ (UPDATE 1)
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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