Content ID

333047

GRAINS-Corn eases again but set for sharp monthly gain

* Recession fears cool market after rally on U.S. crop worries * Chicago corn up 7.5% in August after Monday's 2-month top * Wheat, soybeans also lower (Updates with European trading, changes byline/dateline) By Gus Trompiz and Naveen Thukral PARIS/SINGAPORE, Aug 31 (Reuters) - Chicago corn eased for a second session on Wednesday, curbed by mounting recession worries, but was on course for a steep monthly gain due to declining U.S. and European crop prospects. Soybeans and wheat edged lower. The most-active corn contract on the Chicago Board of Trade (CBOT) was down 1.6% at $6.66-3/4 a bushel by 1213 GMT. The contract is up 7.5% in August. Chicago corn struck a two-month high on Monday following disappointing results from a major tour of U.S. Midwest fields, before a broad slide in financial markets encouraged the cereal market to consolidate. "The macro-environment remains negative for agriculture this week," said Charles Branch, head of agricultural commodities at Britannia Global Markets. Equity and oil markets fell on Tuesday while the dollar rose as another record inflation reading in the euro zone fanned recession fears. CBOT wheat was down 0.8% at $8.13-3/4 a bushel while CBOT soybeans were 0.8% lower at $14.20-3/4 a bushel. Monday's first official forecasts for this year's field crops in Canada confirmed a sharp expected rebound in wheat and canola production following drought-hit 2021 harvests. Oilseed supply risks have also been tempered by better prospects for U.S. soybeans compared with corn. However, signs of Chinese demand were helping underpin soybeans. The U.S. Department of Agriculture on Tuesday confirmed private sales of 264,000 tonnes of U.S. soybeans to unknown destinations, often an indication of exports to China. Grain markets were also wrestling with prospects for Black Sea grain exports. Talk that Russian wheat was sold to Algeria in a tender on Tuesday added to expectations of increasing competition from Russia. A steady flow of shipments from Ukraine under a wartime agreement was also curbing international supply worries, although traders remained cautious. Grain silos in Ukraine's second biggest port, Mykolaiv, were hit by Russian shelling of the city on Tuesday, Ukraine's emergencies service said. Prices at 1213 GMT Last Change Pct End Ytd Pct Move 2021 Move CBOT wheat 813.75 -6.50 -0.79 770.75 5.58 CBOT corn 666.75 -10.50 -1.55 593.25 12.39 CBOT soy 1420.75 -11.75 -0.82 1339.25 6.09 Paris wheat 329.50 -0.75 -0.23 276.75 19.06 Paris maize 317.50 -2.00 -0.63 226.00 40.49 Paris rape 607.25 5.00 0.83 754.00 -19.46 WTI crude oil 89.18 -2.46 -2.68 75.21 18.57 Euro/dlr 1.00 0.00 -0.16 1.1368 -12.07 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 Rashmi Aich, Sherry Jacob-Phillips and Paul Simao)

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