Sunday, January 29

US corn, wheat futures weak; soybeans firm

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CHICAGO, Dec 16 (Reuters) –

US corn and wheat futures dipped on Friday, with concerns about a weakening global economy deterring traders from extending gains made earlier this week.

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Sharp declines in equity markets and the dollar’s strength added to the risk-off mood, traders said.

“The market continues to lick its wounds following hawkish central bank messages across the US, UK, and euro area,” Saxo Bank said in a note.

The US Federal Reserve, the Bank of England and the European Central Bank this week revived investors’ recession worries by signaling more interest rate rises to contain inflation.

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But soybean futures edged higher, with strength in soybean meal and a recent spate of activity on the export market underpinning prices.

The most-active CBOT soft red winter wheat contract was on track to post a weekly gain of 2.7%, which would snap a streak of five straight weeks of downturns. If realized, the gain would be the biggest for wheat since the week ended Sept. . 29.

Corn futures were on pace for a weekly gain of 1.3% and soybean futures for a weekly loss of 0.2%.

At 10:55 am CST (1655 GMT), CBOT March soft red winter wheat was down 3-3/4 cents at $7.53-1/2 a bushel while CBOT March corn was 1-1/2 cents lower at $6.52 a bushel.

CBOT January soybeans were up 6-3/4 cents to $14.80-1/4 a bushel.

Continuing flows of competitively priced Russian and Ukrainian wheat were curbing wheat prices, although traders were wary of potential disruption due to winter weather and the ongoing war in Ukraine.

Russia fired more than 70 missiles during Friday’s morning rush hour in one of its biggest attacks on Ukraine since the start of the war, forcing emergency power cuts nationwide, Ukrainian officials said. (Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore Editing by Rashmi Aich and Paul Simao)