GRAINS-Soybeans tick up with South America weather in focus

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Updates with European trading, changes byline/dateline) By Gus Trompiz and Enrico Dela Cruz PARIS/MANILA, Feb 9 (Reuters) - Chicago soybean futures edged higher on Thursday as traders shrugged off an increased forecast of U.S. stocks and focused on the impact of drought on Argentina. Rain delays to Brazil's soybean harvest, which may also hold up corn planting, were also being monitored. Chicago wheat was firm as traders assessed drought in the U.S. Plains and renewed Russian criticism of a wartime shipping corridor deal with Ukraine. Corn was flat. A weaker dollar and strength in equity and commodity markets lent some support to grains while participants awaited weekly U.S. export sales data. The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.6% at $15.28-3/4 bushel by 1236 GMT. In its February supply and demand report on Wednesday, the U.S. Department of Agriculture (USDA) raised its projection of 2022/23 U.S. soybean ending stocks.


Analysts, however, said the market remained focused on the impact of dry weather in Argentina, and saw the USDA's
reduced estimate of the country's soybean crop at 41 million tonnes as still optimistic. If dryness continues, "it will be difficult for Argentina to produce more than 40 million tonnes of soybeans in the new season," Huatai Futures analysts said in a note. CBOT corn was unchanged on the day at $6.78-1/2 a bushel. The corn market was also weighing declining prospects for Argentina's corn crop and rain risks to Brazilian planting, against the USDA's increased outlook for U.S. stocks. CBOT wheat edged up 0.3% to $7.67-1/4 a bushel. Russia's Deputy Foreign Minister Alexander Grushko said on Wednesday that work to unblock Russian exports under the Black Sea grain deal was unsatisfactory, the TASS news agency reported. However, results reported by traders of tenders by Algeria this week suggested that Black Sea origins including Russian wheat remained competitive for export. India, meanwhile, is considering extending a ban on wheat exports, according government sources cited by Reuters. (Reporting by Gus Trompiz in Paris and Enrico Dela Cruz in Manila; Editing by Sherry Jacob-Phillips)

Messaging: gus.trompiz.thomsonreuters.com@reuters.net))
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