Content ID

332485

GRAINS-CBOT wheat rebounds after nearing six-month low

* Black Sea exports loom over wheat prices

* CBOT corn rises, while soybeans stay under pressure

* Traders await U.S. corn, soy tour next week (Adds start of U.S. trading, pvs dateline PARIS/SINGAPORE)

By Tom Polansek

CHICAGO, Aug 19 (Reuters) - Chicago Board of Trade wheat futures bounced on Friday after nearing a six-month low struck a day earlier, though the market remained capped by sluggish U.S. exports and hopes for increased Black Sea shipments, analysts said.

Corn futures also strengthened, while soybeans edged lower as forecasts for more rain in the U.S. Midwest tempered concerns about unfavorable dryness, traders said. A firm dollar also curbed CBOT grains by making them more expensive overseas in export markets, they said.

"Wheat futures were supported by mild corrective buying," CHS Hedging said.

The most-active CBOT wheat contract was up 17-3/4 cents at $7.66-3/4 a bushel by 10:45 a.m. CDT (1545 GMT), after falling on Thursday to its lowest since Feb. 3. CBOT corn was up 7-1/2 cents at $6.23-1/4 a bushel, while soybeans were 5 cents lower at $14.00-1/4 a bushel.

Grain is being loaded on a further 10 cargo ships in Ukrainian Black Sea ports and prepared for shipment under a food export agreement brokered last month, Ukraine's Infrastructure Minister Oleksandr Kubrakov said.

The increase in Ukraine's exports is helping to push down global wheat prices, according to a Hightower report.

Still, U.N. Secretary-General Antonio Guterres said there was much more to do to ensure full global access to Ukrainian food products and Russian food and fertilisers.

"Generally speaking, the supply outlook remains positive, though it is still fraught with considerable uncertainty, which argues against any pronounced fall in wheat prices," Commerzbank said.

Next week, traders will digest reports from an annual tour in which scouts will take crop measurements in hundreds of corn and soybean fields across key U.S. farm states.

Much of the Corn Belt is dry, but showers are spreading across the upper Midwest, the U.S. Department of Agriculture said in a daily weather report. Any rain is beneficial for immature crops, including soybeans and late-planted corn, the report said.

(Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Subhranshu Sahu, Shinjini Ganguli and Richard Chang)

© Copyright Thomson Reuters 2022. Click For Restrictions - http://about.reuters.com/fulllegal.asp

Read more about
Loading...

Talk in Marketing