GRAINS-Soybeans gains for third session as US dryness threatens yields

18 августа 202318 авг 2023

2 мин

GRAINS-Soybeans gains for third session as US dryness threatens yields SINGAPORE, Aug 18 (Reuters) - Chicago soybean futures gained more ground on Friday, with the market on track for its first weekly gain in a month as hot and dry weather conditions in the U.S. Midwest could reduce production. Corn rose, adding to previous session's gains and wheat inched higher. FUNDAMENTALS The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was up 0.7% at $13.39 a bushel, as of 0047 GMT, corn Cv1 rose 0.7% to $4.89-1/4 a bushel and wheat Wv1 climbed 0.7% to $6.19-3/4 a bushel. Soybeans climbed 2.4% so far this week, on track for their first weekly gain since late-July, while corn has risen marginally this week. Wheat is down 1.2%, set for a third weekly loss. The United States has little room for crop losses due to unfavourable weather as the government has already projected tight soybean supplies, analysts said. U.S. farmers will harvest corn and soybean crops this autumn, an

SINGAPORE, Aug 18 (Reuters) - Chicago soybean futures gained more ground on Friday, with the market on track for its first weekly gain in a month as hot and dry weather conditions in the U.S. Midwest could reduce production.

Corn rose, adding to previous session's gains and wheat inched higher.

FUNDAMENTALS

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was up 0.7% at $13.39 a bushel, as of 0047 GMT, corn Cv1 rose 0.7% to $4.89-1/4 a bushel and wheat Wv1 climbed 0.7% to $6.19-3/4 a bushel.

Soybeans climbed 2.4% so far this week, on track for their first weekly gain since late-July, while corn has risen marginally this week. Wheat is down 1.2%, set for a third weekly loss.

The United States has little room for crop losses due to unfavourable weather as the government has already projected tight soybean supplies, analysts said.

U.S. farmers will harvest corn and soybean crops this autumn, and August is the key month of development for soybeans.

The U.S. Department of Agriculture (USDA) warned hot weather poses a risk to farms.

"A punishing heat wave will grip much of the south and the nation's mid-section, including the western Corn Belt, where temperatures approaching or reaching 100 degrees Fahrenheit could adversely affect filling summer crops," the USDA said in a daily weather report.

Expectations for large Russian shipments have weighed on wheat futures this week although large purchases by India is likely to support prices.

India is in talks with Russia to import wheat at a discount to surging global prices in a rare move to boost supplies and curb food inflation ahead of state and national elections next year, according to four sources.

Although India needs only 3 million to 4 million metric tons of wheat to plug the shortfall, New Delhi might consider importing 8 million to 9 million tons of wheat from Russia to have a far bigger impact on prices, another source said.

In news, the International Grains Council on Thursday raised its forecast for 2023/24 global corn production, with an improved outlook for Ukraine's crop only partially offset by a downward revision for China.

The inter-governmental body, in a monthly report, put global corn production at 1.221 billion metric tons, up from a previous forecast of 1.220 billion and the prior season's 1.160 billion.

Heavy rainfall linked to the weather phenomenon known as El Nino likely will kick off in Argentina in October, experts said on Thursday, which could affect the corn planting season in some parts of the country.

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

MARKET NEWS

Longer-dated U.S. Treasury yields hit a 10-month high Thursday as Wall Street accelerated losses into the close and investors grappled with the potential for longer-lasting high interest rates and a struggling Chinese economy.