Soybeans rise for fourth session, corn firms on strong demand

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SINGAPORE — Chicago soybean futures gained more ground on Thursday with prices rising for a fourth consecutive session on the likelihood of strong demand for US supplies as adverse weather hits production in South America.

Wheat rose, recouping some of previous session’s losses.

FUNDAMENTALS

* The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.5% at $17.27-3/4 a bushel, as of 0057 GMT. Corn rose 0.3% to $7.60-1/4 a bushel and wheat gained 0.7 % at $11.13-1/2 a bushel.

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* Dry weather in parts of Brazil and Argentina is curbing grains and oilseeds production, boosting hopes of higher demand for US shipments.

* Argentina’s Buenos Aires grains exchange cut its 2021/22 corn crop estimate to 49 million tonnes versus 51 million tonnes previously on Wednesday due to lack of rainfall that hit the country’s crops earlier in the year.

* Argentina is the world’s second-largest exporter of corn, the top supplier of soyoil and soymeal, and a major global supplier of wheat and sunflower oil.

* The attention in agricultural markets is focussed on Russia-Ukraine war, which has reduced supplies from the Black Sea region.

* Ukrainian Agriculture Minister Roman Leshchenko submitted his resignation on Wednesday, the daily Ekonomichna Pravda newspaper said, adding that he had not provided a reason.

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* The European Union will distribute 500 million euros ($550 million) to help farmers and allow them to grow crops on fallow land to mitigate food price spikes and potential shortages resulting from Russia’s war in Ukraine.

* Global grains trader Bunge Ltd said its Mykolaiv, Ukraine, port facility sustained “some damage” during fighting in the Black Sea port city early on Tuesday morning.

* The facility, which includes an oilseed processing plant, grain storage and export loading operations, has been closed since Russia invaded Ukraine on Feb. 24.

* Weather favors Russia’s winter grain sowings so far, signaling good prospects for the 2022 crop, state weather forecaster Hydrometcentre said on Wednesday.

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

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MARKET NEWS

* Wall Street pushed stocks and Treasury yields down on Wednesday after both had powered higher earlier in the week as investors took in the strength of the economy and hawkish comments from US policymakers.

DATA/EVENTS (GMT) 0030 Japan JaibunBK Mfg PMI Flash SA March 0745 France Business Climate Mfg March 0815 France Markit Comp, Serv, Mfg Flash PMIs March 0830 Germany Markit Comp, Serv, Mfg Flash PMIs March 0900 EU Markit Comp, Serv, Mfg Flash PMIs March 0930 UK Flash PMIs March 1230 US Initial Jobless Clm Weekly 1230 US Durable Goods Feb 1345 US Markit Comp, Serv, Mfg Flash PMIs March (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)