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333861

GRAINS-U.S. futures dip on macro concerns, but Ukraine war caps losses

Sept 22 (Reuters) - U.S. wheat, soybean and corn futures were under pressure in early Asian trading on Thursday as traders weighed concerns over global economic health after the Federal Reserve signalled more aggressive interest rate hikes this year.

However, concerns about Black Sea supplies limited the losses, with traders worried about an escalation in the Ukraine war that has disrupted crucial grain exports from the region.

FUNDAMENTALS

* The most-traded wheat contract on the Chicago Board of Trade (CBOT) was down 0.3% at $9.01 a bushel, as of 0100 GMT.

* CBOT corn <Cv1 dipped 0.3% to $6.83-1/2 a bushel, while CBOT soybean shed 0.2% to $14.58-1/2 a bushel.

* Fed Chair Jerome Powell vowed on Wednesday that he and his fellow policymakers would "keep at" their battle to beat down inflation, as the U.S. central bank hiked rates by 75 basis points for a third straight time and signalled that borrowing costs would keep rising this year.

* Ukraine President Volodymyr Zelenskiy demanded a special United Nations tribunal impose "just punishment" on Russia for its invasion of Ukraine, including financial penalties and stripping Moscow of its veto power in the Security Council.

* Russian President Vladimir Putin has ordered first wartime mobilisation since World War Two and announced moves to annex four Ukrainian provinces and threatened to use nuclear weapons to defend his country.

* Ukraine's grain exports, which have slumped since the start of the war in February, are down 43.2% year-on-year in the 2022/23 season so far at 6.88 million tonnes, the agriculture ministry said.

* Argentina's Rosario grains exchange cut its production forecasts for the country's corn and wheat crops as a prolonged drought impacts the major grains-producing country.

* Brazilian wheat production should total 10.935 million tonnes in 2022 as four states are likely to increase output in what will be a record season for local farmers, according to agribusiness consultancy Safras & Mercado.

MARKET NEWS

* The dollar surged to a fresh two-decade high against major peers and stocks fell on Thursday after the Fed raised interest rates and forecast more hikes ahead than investors had expected.

DATA/EVENTS (GMT)

0500 Japan Chain Store Sales YY Aug

0645 France Business Climate Sept

1100 UK BOE Bank Rate Sept

1230 US Initial Jobless Claims Weekly

1400 EU Consumer Confidence Flash Sept (Reporting by Enrico Dela Cruz in Manila; Editing by Sherry Jacob-Phillips)

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