Content ID

336514

GRAINS-Wheat slips on more supply prospects; China COVID woes cap soybean gains

KUALA LUMPUR, Nov 23 (Reuters) - Chicago wheat prices slipped on Tuesday, dragged by prospects of more supplies of the grain from the European Union (EU), while a surge in COVID-19 cases in China capped gains on soybeans.

FUNDAMENTALS

* The most-active wheat contract on the Chicago Board of Trade (CBOT) slipped 0.06% to $8.10 a bushel. Soybeans rose 0.16% to $14.32 a bushel, and corn rose 0.04% at $6.59-1/2 a bushel.

* French wheat sales to China and talk of Polish or German wheat being booked in the United States are creating an unexpected wave of demand for EU supplies after exports had been curbed by Russian competition in recent weeks, traders said.

* Brazil's National Association of Grain Exporters said on Tuesday the country's corn exports could jump exponentially next year if farmers harvest a full crop and Chinese demand is strong.

* Workers at the largest U.S. rail union voted against a tentative contract deal reached in September, raising the possibility of a year-end strike that could cause significant damage to the U.S. economy and strand vital shipments of food and fuel.

* The U.S. Department of Agriculture (USDA) on Monday rated 32% of the U.S. winter wheat crop in good to excellent condition, unchanged from the previous week - the lowest for this time of the year in USDA records dating to 1986.

* Meanwhile, soybean futures gave up some gains on concerns that rising COVID-19 cases in China could dent the country's commodities demand. Authorities are grappling with a spike in cases in major cities, deepening worries about the economy and dimming hopes for a quick reopening.

MARKET NEWS

* Global equities rose while U.S. Treasury yields fell as investors awaited the release of the Federal Reserve's meeting minutes for clues on U.S. interest rates and as China's COVID-19 restrictions weighed on sentiment.

DATA/EVENTS (GMT)

1330 US Durable Goods Oct

1330 US Initial Jobless Clm Weekly

1445 US S&P Global Mfg, Serv, Comp Flash PMIs Nov

1500 US U Mich Sentiment Final Nov

1500 US New Home Sales-Units Oct

1900 US Federal Open Market Committee issues minutes

from its meeting of November 1-2 (Reporting by Mei Mei Chu; editing by Uttaresh.V)

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