Content ID

335007

GRAINS-Soybeans set for weekly gain on demand prospects; wheat down

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Strong demand led by China to support Chicago soybean futures

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Extension of Black Sea export corridor in focus for wheat market

(Adds quote in paragraph 3, updates prices)

By Naveen Thukral

SINGAPORE, Oct 21 (Reuters) - Chicago soybean futures slid on Friday, shedding some of previous session's gains, although the market is poised to end the week on a positive note as strong U.S. export data raised demand hopes.

Wheat lost ground with the market on track for a third weekly loss as traders anticipate an extension in the Black Sea export corridor.

"Export demand has turned very strong in the past week with China a more active buyer, and with U.S. soybeans showing competitive pricing off the Pacific Northwest coast to Asia," according to a Hightower report.

The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.4% at $13.86-1/4 a bushel, as of 0152 GMT, and wheat gave up 0.3% to $8.46-1/2 a bushel. Corn lost 0.2% to $6.82-3/4 a bushel.

For the week, soybeans have gained 0.2%, wheat dropped 1.6% and corn lost 1.1%.

The U.S. Department of Agriculture (USDA) said on Thursday that soybean export sales totalled 2.336 million tonnes in the week ended Oct. 13, the biggest weekly total in a year.

Additionally, the USDA said private exporters reported the sale of 201,000 tonnes of soybeans to China and 132,000 tonnes of soybeans to unknown destinations.

The wheat market has faced pressure on hopes of progress towards extending Ukraine's United Nations-backed shipping corridor beyond November.

However, talks on extending the July deal that resumed Ukraine's Black Sea grain and fertilizer exports are not making much progress because Russian concerns are not being taken into proper account, Russia's U.N. ambassador in Geneva said on Thursday.

Senior United Nations officials are negotiating with Russia to extend and expand the July 22 deal that could expire next month if an agreement is not reached.

Argentina's wheat crop is seen sliding again due to prolonged drought plus a recent cold snap, with a grains exchange slashing its production forecast for the main bread and pasta ingredient by nearly 8% in the second downward revision over the past week.

The current 2022/2023 wheat crop is estimated at 15.2 million tonnes, down from last week's forecast of 16.5 million tonnes, the Buenos Aires Grains Exchange (BdeC) said in its weekly report on Thursday.

The International Grains Council (IGC) on Thursday trimmed its forecast for 2022/23 global corn production, partly reflecting downgrades to output in the European Union and the United States.

In its monthly update, the inter-governmental body saw 2022/23 global corn (maize) production falling by 2 million tonnes to 1.166 billion tonnes, considerably below the prior season's 1.217 billion.

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

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