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SINGAPORE — Chicago wheat futures inch higher on Tuesday, rising for the first time in four sessions as strong US weekly exports supported the market.
Soybeans gained ground on expectations of a recovery in demand with China gradually easing COVID-19 restrictions, corn prices rose.
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FUNDAMENTALS
* The most-active wheat contract on the Chicago Board of Trade (CBOT) added 0.4% to $7.42 a bushel, as of 0145 GMT. Soybeans gained 0.6% at $14.45-3/4 a bushel and corn rose 0.2% to $6.41-3 /4 a bushel.
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* During the week ended Dec. 1, US exporters prepared 334,653 tons of wheat for export, beating expectations in a Reuters poll of analysts, according to the US Department of Agriculture (USDA).
* However, sample supplies are likely to keep a lid on prices.
* Russian wheat export prices fell slightly last week amid a record harvest in Russia and active supplies from the Black Sea.
* Australia is expected to produce a bumper year of crops including record wheat production in the current financial year, the government said on Tuesday, despite the impact of widespread flooding in the country’s eastern region.
* Total winter crop production across the country is forecast to total 62 million tons, the second highest on record, according to a report from the federal Australian Bureau of Agricultural and Resource Economics (ABARES).
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* Further easing of COVID-19 quarantine rules in some Chinese cities could increase demand for US commodities, including soybeans.
* US exporters sold 130,000 tons of soybeans for delivery to China.
* Corn export inspections of 524,313 tons and soybean inspections of 1.72 million tons were within trade expectations.
* Commodity funds were net buyers of CBOT soybean and soybean futures contracts on Monday and net sellers of soyoil, wheat and corn wheat futures, traders said.
MARKET NEWS
* Global stocks and Treasury prices fell on Monday as new evidence of a strong US economy raised fears that interest rates will stay higher for longer, eclipsing China’s easing of pandemic restrictions.
DATA/EVENTS (GMT) 0030 Australia Current Account Balance SA Q3 0030 Australia Net Exports Contribution Q3 0700 Germany Industrial Orders MM Oct 0700 Germany Manufacturing O/P Cur Price SA Oct 0700 Germany Consumer Goods SA Oct 13 Thukral; Editing by Rashmi Aich)
financialpost.com