Content ID

333427

Wheat rises, set for third weekly gain; soy, corn up

* India restricts rice exports, could fuel food inflation * Uncertainty about Ukrainian grain exports raises concerns (Adds detail, quote, updates prices) By Naveen Thukral and Sybille de La Hamaide SINGAPORE/PARIS, Sept 9 (Reuters) - Chicago wheat rose on Friday, poised for a third straight weekly gain as India's move to reduce rice exports and uncertainty about Russia's restrictions on Ukrainian grain shipments underpinned the market. Soybeans rose, although the market is on track for a second week of losses on expectations of a record U.S. crop and higher South American planting. "India's decision on rice is going to have inflationary impact and lift prices of wheat and corn as well," said one Sydney-based agricultural analyst. The most-active wheat contract on the Chicago Board of Trade (CBOT) rose 0.7% to $8.34 a bushel, as of 1154 GMT. The market, which climbed to its highest in almost two months this week, has gained some 3% this week. Soybeans gained 0.8% on Friday at 13.07-1/4 but dropped around 1.6% this week, while corn was up 0.4% to 6.71-1/4, recording a rise of around 1% this week. India banned exports of broken rice and imposed a 20% duty on exports of various grades of rice on Thursday as the world's biggest exporter of the grain tries to augment supplies and calm local prices after below-average monsoon rainfall curtailed planting. Wheat markets strengthened by uncertainty over a U.N.-brokered Ukrainian grain export deal. Russia's Foreign Ministry said on Friday that the deal to unblock Ukrainian grain exports via the Black Sea is being fulfilled "badly" and its extension will depend on how it is implemented, RIA reported. This comes after President Vladimir Putin on Wednesday said Russia and the developing world had been "cheated" by the deal, vowing to look to revise its terms to limit the countries that can receive shipments. However, the White House said Thursday there was no indication the deal was unravelling. "The market hates nothing more than uncertainty and that's certainly the case for the moment," a French trader said. French consultancy Agritel noted that although large volumes of grain have had left Ukrainian ports since the corridor was set up, silos were far from being able to absorb the upcoming 2022 harvest. Frosts recorded in the last two weeks in Argentina have caused some damage to the South American country's 2022/23 wheat crop, adding to the impact caused by drought seen in recent months. For soybeans, the United States is on track for a record crop, while farmers are expected to boost planting in Brazil. Prices at 1154 GMT Last Change Pct Move CBOT wheat 835,00 6,00 0,72 CBOT corn 671,25 2,75 0,41 CBOT soy 1397,25 11,25 0,81 Paris wheat 325,75 0,50 0,15 Paris maize 320,75 0,75 0,23 Paris rapeseed 599,75 -0,25 -0,04 WTI crude oil 85,19 1,65 1,98 Euro/dlr 1,0047 0,01 0,53 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne (Reporting by Naveen Thukral; Editing by Rashmi Aich and David Evans)

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