Content ID

334138

GRAINS-Wheat jumps to 1-week high on Russia-Ukraine conflict

SINGAPORE, Sept 29 (Reuters) - Chicago wheat futures rose for a third consecutive session on Thursday, hitting their highest in almost a week, as the Russia-Ukraine war and adverse weather in key exporting countries underpinned prices.

Corn prices were largely unchanged, while soybeans ticked higher.

FUNDAMENTALS

* The most-active wheat contract on the Chicago Board of Trade (CBOT) added 0.3% to $9.05-1/2 a bushel, as of 0013 GMT, after climbing more than 3% on Wednesday.

* Corn was flat at $6.70-1/2 a bushel and soybeans added a quarter of a cent at $14.09 a bushel.

* Escalating conflict between top grain exporters Russia and Ukraine raised concerns over supplies from the Black Sea region.

* Russia is poised to annex a swath of Ukraine after what Kyiv and the West denounced as illegal sham referendums held at gunpoint.

* Ukraine's grain exports are down 41.5% year-on-year in the 2022/23 season so far at almost 8 million tonnes, but the pace of shipments is increasing gradually, agriculture ministry data showed on Wednesday.

* The country's grain exports have slumped since Russia invaded in February because its Black Sea ports were closed off, driving up global food prices and prompting fears of shortages in Africa and the Middle East.

* Dry conditions persist in the southern U.S. Plains, inhibiting the planting of the 2023 winter wheat crop, while the harvest pace has lagged in parts of Canada.

* In Manitoba, the fall harvest was only 47% complete, behind the five-year average of 79%, the provincial government said in a weekly report.

* In South America, the Buenos Aires grains exchange projected that Argentine wheat production would fall nearly 22% from a year ago to 17.5 million tonnes due to drought.

* Bearish weekly U.S. ethanol data provided headwinds to corn prices. The U.S. Energy Information Administration said weekly production of corn-based ethanol fell last week to 855,000 barrels per day, a 19-month low, while stockpiles rose to 22.691 million barrels.

* The market awaits direction from the U.S. Department of Agriculture's quarterly U.S. grain stocks and annual small grains reports, both due on Friday.

* Brazilian soybean processors have temporarily halted units as crushing margins turned negative, reflecting weak domestic demand for biodiesel and high vegetable oil inventories.

* Commodity funds were net buyers of CBOT wheat, corn and soybean futures contracts on Wednesday and net sellers of soyoil and soymeal futures, traders said.

MARKET NEWS

* Global equities staged a partial comeback on Wednesday -- with Wall Street stocks surging around 2% -- as the Bank of England said it would step in to the bond market in an attempt to dampen investors' fears of contagion across the financial system.

DATA/EVENTS 0900 EU Consumer Confid. Final Sept 1200 Germany CPI Prelim YY Sept 1200 Germany HICP Prelim YY Sept 1230 US GDP Final Q2 1230 US Initial Jobless Clm Weekly (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)

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

Read more about
Loading...

Tip of the Day

Driver for electric fence posts is helpful

Fence post driver from Mar '20 AATF I welded a steel cap and handle onto one end of a section of light-duty 1¼-inch angle iron and a footstep onto the other end. This lets me... read more

Talk in Marketing

Most Recent Poll

Will you have enough on-farm storage for harvest?

I just want to see the responses
46% (23 votes)
Yes
36% (18 votes)
No, it’s going to be a bin-buster
8% (4 votes)
Maybe, depending on yields
6% (3 votes)
No, I am looking at new bins or temporary storage
4% (2 votes)
Total votes: 50
Thank you for voting.