Wheat firms on weather worries; Black Sea export deal in focus

Author of the article: Publishing date: Nov 17, 2022  •  5 hours ago  •  2 minute read Join the conversation SINGAPORE — Chicago wheat futures rose for the first time in three sessions on Friday on concerns over adverse weather conditions in key exporting countries, although gains were limited following an extension of a Black Sea…
Wheat firms on weather worries; Black Sea export deal in focus

Author of the article:

Publishing date:

Nov 17, 2022  •  5 hours ago  •  2 minute read

Join the conversation

SINGAPORE — Chicago wheat futures rose for the first time in three sessions on Friday on concerns over adverse weather conditions in key exporting countries, although gains were limited following an extension of a Black Sea export deal.

Corn rose for a second session while soybeans gained ground.

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

“As expected, the Black Sea deal has been extended, which is going to add pressure on prices but we have dryness in U.S. Plains and Argentina,” said one Singapore-based grains trader. “Supplies are set to remain tight in the coming months.”

The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.7% at $8.12 a bushel, as of 0313 GMT, and the market has lost 0.2% this week.

Corn rose 0.5% to $6.70-1/2 a bushel and soybeans gained 0.3% at $14.20-1/2 a bushel. For the week, corn is up 1.9%, while soybeans have lost around 2%.

The deal aimed at easing global food shortages by helping Ukraine export its agricultural products from Black Sea ports was extended for four months on Thursday, though Russia said its own demands were yet to be fully addressed.

The agreement, initially reached in July, created a protected transit corridor and was designed to alleviate shortages by allowing exports to resume from three ports in Ukraine, a major producer of grains and oilseeds.

Concerns over adverse weather in key exporting countries continued to support prices.

Argentina farmers could reduce the area they plant with soy if more rain does not bring relief to drought-plagued farmlands soon, the Buenos Aires grains exchange said Thursday as it forecast moderate showers in parts of the country’s farm belt.

A prolonged drought has forced farmers to delay planting soy, which is only 12% complete, versus 29% at the same date last year. The current crop’s total planted area is projected at 16.7 million hectares (41.3 million acres), the exchange said.

The International Grains Council trimmed its forecast for 2022/23 global wheat production by one million tonnes, to 791 million tonnes, and maintained its 2022/23 world corn crop outlook at 1.166 billion tonnes.

Commodity funds were net sellers of CBOT soybean, wheat, soyoil and soymeal futures contracts on Thursday, and were net even in corn futures, traders said. (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
US job openings sink amid higher rates and slower growth
Read More

US job openings sink amid higher rates and slower growth

Author of the article: The Associated Press Christopher Rugaber FILE - A sign marks the entrance of the Micron Technology automotive chip manufacturing plant on Feb. 11, 2022, in Manassas, Va. Micron, one of the world's largest microchip manufacturers, is expected to open a semiconductor plant in New York, promising a $100 billion investment and…
U.S. retailers cut prices but services keep inflation hot
Read More

U.S. retailers cut prices but services keep inflation hot

Author of the article: WASHINGTON — Major U.S. retailers like Target Corp and Walmart Inc have been cutting prices to clear overstocked warehouses, but hotel revenue is pouring in as daily room rates and occupancy have broken above pre-pandemic levels. Used car prices are no longer surging at the chart-topping pace that drove an initial…