Content ID

334948

GRAINS-Chicago wheat drops on concerns over weak export demand

NEW DELHI, Oct 20 (Reuters) - Chicago wheat edged lower on Thursday as weak export demand weighed on prices, but concerns over unfavourable weather conditions in some of the world's top producers limited losses.

Soybean jumped due to higher export demand.

FUNDAMENTALS

* The most-active wheat futures on the Chicago Board of Trade (CBOT) dropped 0.2% to $8.39-1/2 a bushel, as of 0018 GMT, while corn was little changed at $6.78-3/4 a bushel.

* Soybeans gained 0.2% to $13.75 a bushel.

* Russia-focused consultancy Sovecon expects Russia's 2023 wheat crop to decline to 84.8 million tonnes from a record 100.6 million tonnes in 2022. Russia is the world's largest wheat exporter.

* Sovecon also expects Russia to cut its winter grain sowing area substantially this autumn following heavy rains and relatively low domestic prices for wheat amid a strong rouble currency.

* Russia's agriculture ministry has proposed setting the country's grain export quota at 25.5 million tonnes for the period from mid-February until the end of June.

* The size of the quota is equal to the one proposed by Russia's Union of Grain Exporters earlier in October, when it said that such exports would be not of a restrictive nature and would be "a compromise option".

* Egypt's state grains buyer, the General Authority for Supply Commodities, held private talks on Tuesday to directly purchase wheat. Egypt has not issued international purchasing tenders since mid-July, opting to buy directly from trading houses instead.

* Wheat traders remain cautious about the negotiations between the United Nations and Russia about renewing the corridor agreement to facilitate wheat supplies from the Black Sea region.

* A government agency in Pakistan has issued a new international tender to purchase and import 500,000 tonnes of wheat, European traders said. The deadline for submission of price offers in the tender from the Trading Corporation of Pakistan is Oct. 26.

* A group of South Korean flour mills led by the miller SPC bought around 30,000 tonnes of milling wheat to be sourced from the United States on Wednesday, European traders said.

* Iraq's state grains buyer has issued a tender to buy a nominal 50,000 tonnes of hard milling wheat, European traders said. The deadline for submission of price offers in the tender is believed to be Oct. 24 with traders saying offers to remain valid until Oct. 27.

* Grain trader Archer-Daniels-Midland Co projects to grow its soybean exports from Brazil's 2022/23 crop-year by 11%, amid record production forecasts.

MARKET NEWS

* Wall Street closed lower on Wednesday, marking the end of a multi-session rally, and Treasury yields spiked as gloomy data and downbeat corporate outlooks tossed cold water on investor risk appetite. (Reporting by Mayank Bhardwaj)

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