Chicago grains ease as China, Ukraine, and weather weigh
By Gus Trompiz and Naveen Thukral PARIS/SINGAPORE, Aug 16 (Reuters) - Chicago corn, wheat and soybean futures lost more ground on Tuesday, dented by economic risks in China, rain relief forecast for U.S. crops and increasing shipments from war-torn Ukraine.
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The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 1.0% at $13.98-3/4 a bushel by 1032 GMT. CBOT corn gave up 1.3% to $6.20 a bushel, while CBOT wheat slipped 1.6% to $8.05 a bushel. On Monday, soybeans had fallen to their lowest in more than a week as an unexpected interest rate cut in China fanned worries about faltering growth in the world's biggest soy importer. Concern about China triggered a slide in crude oil, adding pressure on soybeans and corn that are among crops widely processed for use in biofuels. Economic jitters also pushed the dollar higher, also pressuring commodities priced in the U.S. currency.
"Weak economic data from China put a dampener on the commodities markets at the beginning of the week," Commerzbank said in a note. "In our view, problems in the real estate sector, plus the government's zero-Covid strategy, are likely to continue to weigh on the economy in the short to medium term."
Weather forecasts for rain this week in dry western parts of the U.S. corn and soybean belt also capped prices, taking attention away from a decline in crop conditions last week as reported by the USDA late on Monday.
"Additional moisture will be needed, but cooler weather to follow the rain will help conserve the moisture and support better crop development," Terry Reilly, senior analyst with Futures International in Chicago, said in a report.
Weather concerns have also been tempered by showers and cooler temperatures this week in Europe that could provide late relief for corn crops.
Supply fears related to Russia's invasion of Ukraine have also eased by initial grain shipments under a safe-passage agreement. A first cargo of food aid bound for Africa since Russia's invasion left Ukraine on Tuesday, while the country's deputy infrastructure minister said it could export 3 million tonnes of grain from its ports in September.
Prices at 1032 GMT Last Change Pct End Ytd Pct Move 2021 Move CBOT wheat 805.00 -12.75 -1.56 770.75 4.44 CBOT corn 620.00 -8.25 -1.31 593.25 4.51 CBOT soy 1398.75 -13.50 -0.96 1339.25 4.44 Paris wheat 334.25 -5.50 -1.62 276.75 20.78 Paris maize 332.25 -4.75 -1.41 226.00 47.01 Paris rape 629.75 -2.50 -0.40 754.00 -16.48 WTI crude oil 88.81 -0.60 -0.67 75.21 18.08 Euro/dlr 1.01 0.00 -0.29 1.1368 -10.88 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne.
(Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Sherry Jacob-Phillips and David Evans)
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