Fri. Jan 21st, 2022


Article content

PARIS/SINGAPORE — Chicago soybean futures were little

changed on Friday, steadying after touching a 10-day low as the market weighed

prospects for rain relief in dry South American growing belts.

Corn inched up after also touching a 10-day low as traders assessed to what

extent expected showers could benefit parched crops in southern Brazil and

Argentina.

Chicago wheat ease further, pressured by a three-month low for Paris

futures, as large wheat crops in South America and Australia increased

Advertisement

Article content

competition in export markets.

The most-active soybean contract on the Chicago Board of Trade (CBOT)

was up 0.1% at $13.78 a bushel by 1300 GMT.

It earlier fell to a 10-day low at $13.63-3/4 before steadying.

“We were looking at a bigger drop in South American soybean production but

with the recent weather outlook it might not be as bad as expected earlier,”

said Ole Houe, director of advisory services at agriculture brokerage IKON

Commodities in Sydney.

Weather forecasts show parched areas of Argentina, the world’s top exporter

of processed soy and No. 2 producer of corn, may receive significant rainfall

from late this week.

However, analysts are cautious about the benefit of any rain in Argentina

after a heatwave exacerbated dryness linked to the La Nina climate pattern.

Advertisement

Article content

The U.S. Department of Agriculture (USDA) in a crop report on Wednesday

reduced its soybean and corn production forecasts for Brazil and Argentina,

although by less than some private analysts.

CBOT corn was up 0.4% at $5.89-3/4 a bushel. It earlier equalled

Thursday’s 10-day low of $5.85-1/4 before steadying.

CBOT wheat was down 0.4% at $7.44, near an earlier one-week low, while

March wheat on Paris-based Euronext was down 0.6% at 264.25 euros

($307.20) a tonne after earlier hitting a new three-month low.

The International Grains Council on Thursday raised its forecast for 2021/22

global wheat production, partly driven by an improved outlook in Australia.

Talk that Algeria would again overlook French supplies in its latest wheat

Advertisement

Article content

import tender weighed on the European market.

Algeria’s state grains agency OAIC made an initial purchase of wheat in the

tender on Friday that was expected to be sourced from South America and the

Black Sea region, traders said in early assessments.

Prices at 1300 GMT

Last Change Pct End Ytd Pct

Move 2021 Move

CBOT wheat 744.00 -2.75 -0.37 770.75 -3.47

CBOT corn 589.75 2.25 0.38 593.25 -0.59

CBOT soy 1378.00 0.75 0.05 1339.25 2.89

Paris wheat 264.25 -1.50 -0.56 278.50 -5.12

Paris maize 237.75 -1.25 -0.52 226.00 5.20

Paris rape 747.50 7.25 0.98 754.00 -0.86

WTI crude oil 82.50 0.38 0.46 75.21 9.69

Euro/dlr 1.14 0.00 -0.07 1.1368 0.68

Most active contracts – Wheat, corn and soy US cents/bushel, Paris

futures in euros per tonne

(Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by

Subhranshu Sahu and Jason Neely)

Advertisement

Comments

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

Leave a Reply

Your email address will not be published. Required fields are marked *