Soybeans set for 4th weekly gain on South American crop woes

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PARIS/SINGAPORE — Chicago soybean futures edged up on

Friday to stay on course for a fourth weekly gain, underpinned by drought-curbed

harvest prospects in South America.

Corn rose with support from falling forecasts for production in Argentina

and Brazil, as well competition with soybeans for US spring planting.

Wheat tracked corn higher as traders also assessed risks to Black Sea

shipments as Russia plans naval drills amid a standoff with the West over

Ukraine.

A higher dollar was capping the rise in grains, traders said.

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

was up 0.4% at $15.81-1/4 a bushel by 1155 GMT.

The benchmark had reached a nine-month high at $16.33 on Thursday before

closing lower.

For the past four weeks, it was showing a 15% gain.

Thursday’s peak followed a steep cut to food supply and statistics agency

Conab’s official estimate of Brazil’s soybean crop.

In Argentina, dry conditions in the country’s soybean belt are igniting

fears of a “productive disaster” akin to that in 2018, the Rosario grains

exchange said on Thursday.

“It is mainly supply side issues that are dominating the soybean market,”

said one Singapore-based trader. “The market is looking at lower supplies, even

as demand remains strong.”

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A run of US soybean export sales to China has contributed to the strength

in Chicago futures.

CBOT corn was up 0.6% at $6.45-3/4 a bushel. It was also set for a

weekly rise after hitting a near eight-month high on Thursday.

South American harvest worries were supporting corn ahead of US spring

planting, despite uncertainty over Chinese demand and signs of corn losing feed

demand to wheat.

“There are calculations going on for US spring planting,” Nathan Cordier

of consultancy Agritel said. “The corn market doesn’t really need to lose

acreage in the US”

CBOT wheat was up 0.7% at $7.77 a bushel.

In a volatile session on Thursday, US and European futures rallied sharply

on concern that Russian naval drills could disrupt commercial shipping next

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week, before turning lower as traders saw no immediate impact.

Prices at 1155 GMT

Last Change Pct End Ytd Pct

Move 2021 Move

CBOT wheat 777.00 5.50 0.71 770.75 0.81

CBOT corn 645.75 4.00 0.62 593.25 8.85

CBOT soy 1581.25 7.00 0.44 1339.25 18.07

Paris wheat 265.50 4.00 1.53 278.50 -4.67

Paris maize 253.25 2.50 1.00 226.00 12.06

Paris rape 692.75 6.50 0.95 754.00 -8.12

WTI crude oil 90.79 0.91 1.01 75.21 20.72

Euro/dlr 1.14 0.00 -0.30 1.1368 0.22

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

Sherry Jacob-Phillips, Shailesh Kuber and David Evans)