U.S. grains fall on recession fears; corn extends losses for third day
PARIS/SINGAPORE, Sept 1 (Reuters) - Chicago corn, wheat, and soybeans slid on Thursday, as mounting concerns about a global economic slowdown pressured commodity markets, although losses were limited by hot weather conditions curbing U.S. and European crop prospects.
The most-active corn contract on the Chicago Board of Trade (CBOT) was down 1.3% at $6.62 a bushel, as of 1045 GMT. The contract was set for a third consecutive day of losses. Soybeans fell to $14.06-1/2 a bushel, losing 1.1% after three sessions of losses. Meanwhile, wheat gave up 1% and traded at $8.23-1/4 a bushel.
Global markets are being weighed down by fears of recession, which dragged down stocks and commodities. European stocks slid and the dollar spiked on Thursday following concerns about aggressive rate hikes from global policymakers. Oil prices also fell on increased supply and worries that the global economy could slow further with renewed restrictions to curb COVID-19 in China.
"Some traders are taking advantage of the current (grain price) levels to make new profit-taking operations," French consultancy Agritel said in a note.
However, expectations of lower U.S. production are supporting corn prices and worries about shipments from war-torn Ukraine are likely to support prices.
Meanwhile, Russian wheat exports are expected to rise to 4 million tonnes in September from 3.5 million tonnes in August as the record-high crop begins to reach the market, traders and industry analysts said. The supplies from the world's largest wheat exporter would still be low compared with September last year as they contend with shipments from Europe and Ukraine, a strong rouble and problems with logistics and payments caused by Western sanctions imposed on Moscow, they added. In soybeans the USDA confirmed private sales of 167,000 tonnes of U.S. soybeans to China, the latest in a series of U.S. soy sales announcements in the last two weeks.
The USDA said on Wednesday it would not publish weekly export sales data for crops such as corn, soybeans and wheat until September 15 at the earliest. It is struggling to launch a new reporting system for the data, which has a week-long delay.
Prices at 1045 GMT Last Change Pct Move CBOT wheat 823,25 -8,25 -0,99 CBOT corn 662,00 -8,50 -1,27 CBOT soy 1406,50 -16,00 -1,12 Paris wheat 321,75 -2,75 -0,85 Paris maize 316,50 -3,50 -1,09 Paris rapeseed 608,50 -8,00 -1,30 WTI crude oil 87,50 -2,05 -2,29 Euro/dlr 1,0010 0,00 -0,47 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne.
(Reporting by Naveen Thukral in Singapre and Sybille de La Hamaide in Paris, additional reporting by Emily Chow in Kuala Lumpur; Editing by Uttaresh.V, Sherry Jacob-Phillips and Shinjini Ganguli)
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