Thursday, December 1

Wheat rises but set for biggest weekly loss in four months


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SINGAPORE — Chicago wheat futures firmed on Friday, but were poised for their biggest weekly drop in four months as expectations of higher world supplies weighed on the market.

Soybeans gained about half a percent, while corn ticked higher.

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FUNDAMENTALS

* The most-active wheat contract on the Chicago Board of Trade (CBOT) rose 0.3% to $8.05-1/2 a bushel, as of 0110 GMT, soybeans added 0.8% to $14.34-1/4 a bushel and corn gained 0.2% to $6.54-3/4 a bushel.

* The US Department of Agriculture (USDA), in its monthly supply-demand report this week, estimated world wheat stocks at 267.82 million tonnes, up slightly from its October outlook of 267.54 million tonnes. Analysts on average had been expecting a small decline to 266.52 million tones.

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* Wheat is down around 5% so far this week, heading for its biggest weekly loss since mid-July. Soybeans have lost about 2% this week, on track for their first weekly drop in six, and corn is down 4%, heading for its biggest weekly fall since late July.

* The USDA’s monthly report estimated that US corn and soybean inventories would be bigger than previously thought, as yields of both crops increased from earlier expectations.

* Corn futures have faced pressure as the USDA reported weekly export sales of US corn in the week ended Nov. 3 at 265,300 tonnes, below a range of trade expectations for 300,000 tonnes to 650,000 tonnes.

* Argentina’s major Buenos Aires grains exchange slashed its wheat harvest forecast on Thursday amid a lengthy drought and frosts that have hit crops, but a forecast of rainfall ahead for key farming regions spelled more positive news for soy.

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* The exchange cut its 2022/23 wheat production outlook to 12.4 million tonnes from 14 million tonnes previously, hot on the heels of a similar cut by the rival Rosario exchange, which forecasts the weakest crop in seven years.

* Soaring wheat prices in India could prompt price-cooling measures such as the release of state reserves into the open market while axing the 40% tax on imports, trade and government sources said on Thursday.

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

MARKET NEWS

* US stocks jumped, the dollar tanked and Treasury yields tumbled on Thursday as cooler-than-expected inflation data suggested the Federal Reserve’s barrage of interest rate hikes are beginning to have their intended effect.

DATA/EVENTS (GMT) 0700 Germany HICP Final YY Oct 0700 UK GDP Est 3M/3M Sept 0700 UK GDP Estimate MM Sept 0700 UK Manufacturing Output MM Sept 0700 UK GDP Prelim QQ, YY Q3 1500 US U Mich Sentiment Prelim Nov (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)

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