Content ID

329005

GRAINS-Corn up for 3rd session on strong demand; wheat slips

* Chicago corn jumps 1.2%, rises 5.3% in 3 sessions of gains

* Strong demand, higher physical prices drive gains in corn

* Wheat market eases, Black Sea supply woes support prices (Recasts, adds quote in paragraph 3, updates prices)

By Naveen Thukral

SINGAPORE, June 8 (Reuters) - Chicago corn gained more ground on Wednesday, with strong demand and higher prices in the physical market lifting futures for a third straight session to a one-week high.

Wheat fell for a second session, but losses were limited by diminishing prospects of an increase in exports from war-torn Ukraine.

"Prices in the physical market are pretty firm," said one Singapore-based feed grains trader. "Traders who had sold corn in tenders are covering positions."

The most-active corn contract on the Chicago Board of Trade (CBOT) was up 1.2% at $7.65-3/4 a bushel, as of 0249 GMT, after climbing to its highest since May 31 at $7.68-1/4 a bushel. Wheat slipped 0.5% to $10.66-3/4 a bushel, while soybeans added 0.9% to $17.44-1/4 a bushel.

Spot basis bids for corn strengthened at rail terminals, processors and elevators across the U.S. Midwest on Tuesday, grain dealers said.

The wheat market had climbed more than 5% on Monday, as reports of Russian strikes on Kyiv and the port of Mykolaiv dampened expectations that a diplomatic deal could be reached to resume sea shipments of Ukrainian grain.

Russian shelling destroyed the warehouses of one of Ukraine's largest agricultural commodities terminals in the Black Sea port of Mykolaiv over the weekend, the head of the region said on Tuesday.

Ukraine, one of the world's leading grain producers and exporters, operates dozens of export terminals along the Black Sea where cities are regularly shelled by Russia. A Russian blockade is preventing Ukraine from using the sea for exports.

The Russian and Turkish defence ministers discussed a potential grain exports corridor from Ukraine and northern Syria on Tuesday, Turkey's defence ministry said, as Ankara and Moscow prepare for talks between their foreign ministers.

Ukraine's grain, oilseed and vegetable oil exports in May rose 80% to 1.743 million tonnes month-on-month, but the volumes are still significantly below the exports in May 2021, the agriculture ministry said on Tuesday.

Commodity funds were net buyers of CBOT corn, soybean, soymeal and soyoil futures contracts on Tuesday, traders said. The funds were net sellers of wheat. (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips and Shailesh Kuber)

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

Read more about
Loading...

Talk in Marketing