Friday, March 29

Wheat slips as Ukrainian supply, recession fears weigh


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US wheat futures slipped in early Asian trading on Monday, pressured by Ukrainian supplies under a deal brokered by the United Nations and Turkey, and concerns that a global recession would dampen demand.

Soybean and corn prices were firmer in choppy trading after four straight sessions of losses.

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FUNDAMENTALS

* The most-traded wheat contract on the Chicago Board of Trade (CBOT) was down 0.3% at $8.57-1/4 a bushel, as of 0147 GMT.

* CBOT soybeans edged up 0.5% to $14.55-3/4 a bushel, while CBOT corn gained 0.3% to $6.79 a bushel.

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* A total of 165 ships with 3.7 million tonnes of agricultural products on board have left Ukraine under the UN-brokered deal to unblock Ukrainian sea ports, the Ukrainian infrastructure ministry said on Sunday.

* On Saturday, the third vessel charted by the United Nations World Food Program left Ukraine’s Chornomorsk Black Sea port with around 30,000 tonnes of wheat on board.

* This week will see several central bank policy decisions, with investors awaiting another jumbo rate increase from the US Federal Reserve at its Sept. 20-21 meeting.

* Ukrainian President Volodymyr Zelenskiy said on Friday he would only back the idea of ​​reopening Russian ammonia exports through Ukraine if Moscow handed back prisoners of war, an idea the Kremlin quickly rejected.

* Analysts said US soybean futures may remain volatile amid stiff export competition from South America and fears of a global recession.

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

MARKET NEWS

* Share markets idled in Asia as investors braced for a week littered with 13 central bank meetings that are certain to see borrowing costs rise across the globe. (Reporting by Enrico Dela Cruz in Manila; Editing by Subhranshu Sahu)



financialpost.com