SINGAPORE — Chicago soybeans futures slid on Monday, dropping from last session’s six-week high, after China denied it was considering easing its zero COVID-19 policy.
Wheat eased, falling for three out of four sessions, while corn dropped to its lowest in two weeks.
* The most-active soybean contract on the Chicago Board of Trade (CBOT) lost 0.9% to $14.49-1/4 a bushel, as of 0118 GMT, having risen almost 2% on Friday.
* Wheat fell 0.7% to $8.41-3/4 a bushel and corn gave up 0.6% to $6.77-1/4 a bushel, after declining earlier in the session to $6.77 a bushel, the weakest since Oct. 24.
* China on Sunday reported its highest number of new COVID-19 infections in six months, a day after health officials said they were sticking with strict coronavirus curbs, likely disappointing recent investor hopes for an easing.
* Prospects for China to ease some of its COVID-19 restrictions had lent support to soybeans and other markets on Friday. China is by far the world’s largest soybean importer.
* Soybean planting in Argentina’s core farm belt region is far behind last year’s pace due to a lack of rain, the Rosario grains exchange said in a report on Friday, a concern for farmers in the world’s top exporter of soy oil and meal.
* The protracted drought, linked to a third straight La Nina climate pattern, has hammered wheat production and now threatens to affect the upcoming soy and corn season, with farmers likely to invest less in planting unless conditions improve.
* Wheat prices fell, although uncertainty about grain exports from the Black Sea region and adverse weather conditions in Australia curbed losses.
* Russia wants the West to ease restrictions on state agriculture lender Rosselkhozbank to facilitate Russian grain exports, according to four sources familiar with the request, made during talks to extend a deal on food shipments from Ukraine.
* In France, the European Union’s largest grain producer, the warmest October in 40 years has accelerated crop development so much that it has left them fragile to sudden frosts later in the season, French crop institute Arvalis warned on Friday.
* Large speculators raised their net long position in CBOT corn futures in the week to Nov. 1, regulatory data released on Friday showed.
* The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and raised their net long position in soybeans.
* US stock futures slipped in Asia, after Beijing denied it was considering easing its zero COVID-19 policy, helping the dollar recover some losses while dealing a setback to oil and commodities.
DATA/EVENTS (GMT) 0300 China Exports, Imports YY Oct 0300 China Trade Balance Oct 0700 Germany Industrial Output MM Sept 0700 Germany Industrial production YY SA Sept 0700 UK Halifax House Prices MM, YY Oct (Reporting by Naveen Thukral; Editing by Rashmi Aich )