GRAINS-Soybean futures climb on bargain buying, wheat turns lower
(Recasts, updates prices, adds quotes, changes byline, changes dateline from previous PARIS/SINGAPORE)
By Julie Ingwersen
CHICAGO, Nov 18 (Reuters) - U.S. soybean futures rose on Friday on bargain buying after a two-session slide and spillover strength from soy product futures including soymeal and soyoil, traders said.
Wheat futures turned lower, retreating from early advances, with the benchmark December contract on the Chicago Board of Trade poised for a third consecutive lower close following news this week of an extension of a corridor for grain exports from Ukraine. Corn futures were narrowly mixed in choppy trade.
As of 1 p.m. CDT (1900 GMT), CBOT January soybeans were up 10-1/4 cents, or 0.7%, at $14.27-1/4 per bushel. CBOT December soymeal was up about 1% and December soyoil rose about 0.9%.
CBOT December wheat was down 4-1/4 cents, or 0.5%, at $8.02-1/2 a bushel, while December corn was up 1/4 cent at $6.67-3/4.
Soybeans firmed but the benchmark January contract stayed inside of Thursday's trading range as traders awaited fresh fundamental news. The market was digesting Thursday's weekly
export sales report
from the U.S. Department of Agriculture, which showed U.S. soybean sales for the last reporting week just above 3 million tonnes.
"Demand remains fairly good for beans. We saw large export sales in beans yesterday that I don't think was worked into the market because of the focus around the Black Sea region, so that is finally starting to catch up," said Terry Reilly, senior analyst with Futures International in Chicago.
Argentina farmers could reduce the area they plant with soy if more rain does not bring relief to drought-plagued farmlands soon,
the Buenos Aires grains exchange said
Worries about Argentina's drought-hit wheat harvest lent underlying support to wheat futures. The dry conditions forced the Buenos Aires exchange last week to cut its estimates for the country's current wheat harvest to
12.4 million tonnes
, down from an initial 20.5 million tonnes at the season's onset.
Still, CBOT wheat futures turned down Friday on a lack of fresh supportive news and a firmer dollar, which tends to make U.S. grains less competitive globally.
Talk of further sales of French wheat to China and of possible sales of northern European wheat to the United States underscored how U.S. wheat remains uncompetitive globally.
The CBOT December wheat contract hovered above a 2-1/2-month low set on Thursday after a deal allowing war-torn Ukraine to export agricultural products from Black Sea ports was extended for another 120 days. (Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Sherry Jacob-Phillips, Vinay Dwivedi and Nick Zieminski)
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