PARIS/SINGAPORE — Chicago wheat futures on Thursday
extended a bounce from a five-week low, supported by weakness in the dollar and
reduced forecasts for Argentina’s drought-hit crop.
Lingering uncertainty over the future of a United Nations-backed Black Sea
export corridor also underpinned grain markets.
Chicago corn was firm to hold near a one-week high touched on Wednesday,
while soybeans rose to a two-week top.
The dollar index slipped to a new one-month low before steadying.
Investors are debating whether the U.S. Federal Reserve will curb its pace
of interest rate increases, while bracing for an expected rate hike from the
European Central Bank.
A weaker dollar makes U.S. commodities cheaper overseas.
Argentina’s 2022/23 wheat harvest will come in at 13.7 million tonnes, the
Rosario grain exchange said on Wednesday, a sharp cut from its previous forecast
of 15 million tonnes.
That followed an estimate of 15.5 million tonnes by the U.S. Department of
Agriculture’s local office in Argentina, which was 2 million tonnes below the
USDA’s official forecast.
The reduced production outlook cooled hopes that rain in recent days may
boost crop conditions.
“Argentina has received some rains this week but traders see a drier period
just ahead,” research firm Hightower said in a report. “Some weather traders see
the drought stress continuing in the longer term.”
Argentina is a major wheat exporter and a poor crop could tighten
international supply if the war in Ukraine continues to hamper Black Sea trade.
United Nations aid chief Martin Griffiths said on Wednesday that he was
“relatively optimistic” that the corridor arrangement for Ukrainian exports
would be extended beyond mid-November.
The most-active wheat contract on the Chicago Board of Trade (CBOT)
was up 1.1% at $8.49-1/2 a bushel by 0929 GMT, moving further away from
Wednesday’s low of $8.24.
CBOT soybeans edged up 0.4% to $13.99 a bushel and corn also
rose 0.4%, to $6.87-1/2 a bushel.
The dollar’s weakness has added to improved export sentiment in soybeans
after sign of a pick-up in overseas demand.
Traders are awaiting weekly U.S. export sales data at 1230 GMT for further
Prices at 0929 GMT
Last Change Pct End 2021 Ytd Pct
CBOT wheat 849.50 9.00 1.07 770.75 10.22
CBOT corn 687.50 2.50 0.36 593.25 15.89
CBOT soy 1399.00 6.00 0.43 1339.25 4.46
Paris wheat 337.50 3.25 0.97 276.75 21.95
Paris maize 334.75 2.50 0.75 226.00 48.12
Paris rape 645.00 -0.75 -0.12 754.00 -14.46
WTI crude oil 87.86 -0.05 -0.06 75.21 16.82
Euro/dlr 1.00 0.00 -0.31 1.1368 -11.63
Most active contracts – Wheat, corn and soy US cents/bushel, Paris
futures in euros per tonne
(Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by
Rashmi Aich and Subhranshu Sahu)