Monday, August 8

Corn, soybeans ease for 2nd day on forecasts of favorable US weather


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SINGAPORE — Chicago corn and soybean futures lost more ground on Wednesday, with prices under pressure from expectations of beneficial rains in parts of the US Midwest, easing concerns over supplies.

Wheat slid after Egypt, the world’s biggest importer, canceled an international purchase tender that had drawn offers of US wheat.

FUNDAMENTALS

* The most-active corn contract on the Chicago Board of Trade (CBOT) fell 1% to $5.89-1/2 a bushel, as of 0048 GMT, and soybeans gave up 1% to $13.45 a bushel.

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* Wheat dropped 1.1% to $8.03 a bushel.

* Corn and soybeans are being weighed down by forecasts pointing to beneficial rains in parts of the US Midwest crop belt next week, which could bolster yields.

* A weekly report on Monday showed stabilizing US crop conditions. The US Department of Agriculture (USDA) late on Monday rated 64% of the US corn crop in good-to-excellent condition, unchanged from the previous week, while analysts surveyed by Reuters on average had expected a decline of one percentage point.

* Egypt’s state grains buyer GASC canceled its international tender for wheat with no purchase made, as offer prices were higher than estimates.

* There was additional pressure on the wheat market amid hopes that a deal will be found to export more grains out of Ukraine as Russian President Vladimir Putin met with his Turkish counterpart in Iran to discuss the matter.

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* Unsold grain stocks have piled up in Ukraine as the country has not been able to access the Black Sea ports since Russia’s invasion in February.

* While some crops have left by rail or road via neighbors such as Romania and Poland, millions of tonnes have piled up on farms.

* The USDA estimated this month that Ukraine ended the 2021/22 season in June with 6.8 million tonnes of corn, an eight-fold rise from a year earlier, while wheat stocks almost quadrupled to 5.8 million tonnes.

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

MARKET NEWS

* A global gauge of stocks notched its biggest one-day percentage gain in nearly a month on Tuesday and the dollar weakened for a third straight day as expectations grew for the European Central Bank to enact a bigger rate hike than expected this week.

DATA/EVENTS (GMT) 0600 UK CPI YY June 1400 EU Consumer Confid. Flash July 1400 US Existing Home Sales June (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)



financialpost.com

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