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Prospect of record Brazilian soybean crop weakens prices
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Cheap Russian wheat offered despite political risk
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Stronger dollar trend weighs on grains and soybeans
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Corn follows wheat down
(Recasts with weakness in European trade, adds new comment,
changes dateline)
By Michael Hogan
HAMBURG, Feb 16 (Reuters) - Chicago soybean, wheat and
corn fell on Thursday, with the stronger trend in the dollar
hampering export prospects for U.S. supplies at a time of
intensifying competition, especially from Brazilian soybeans and
Russian wheat.
Chicago Board of Trade most-active soybeans were down
0.1% to $15.23-3/3 a bushel at 1211 GMT. Wheat fell 0.4%
to $7.77 a bushel, corn fell 0.1% to $6.75-1/4 a bushel.
Brazil’s soybean harvest this year could be a record of over
150 million tonnes.
“The stronger trend in the dollar is a factor weakening soybeans, wheat and corn today at a time of intensifying competition in export markets to U.S. supplies,” said Matt Ammermann, StoneX commodity risk manager. “The weight of record large Brazilian soybean crop is beginning to be felt. The price spread between cash markets in the U.S. and Brazil means that cheaper Brazilian soybeans are expected to meet import demand from China and other world buyers in the near future.” “There is also concern that China could cancel some past contracts for U.S. soybeans and transfer business to Brazil.” There is risk a safe shipping agreement for Ukraine’s grain exports may not be extended with the first anniversary of Russia’s invasion of Ukraine approaching. “Wheat is seeing downward pressure from the cheap prices being offered for Russian wheat in export markets, despite the geo-political risks,” Ammermann said. “Russia still has a lot of wheat to export at low prices. Uncertainty remains about whether the safe shipping channel for Ukraine’s grain exports will be extended in March, but Russia would also have a lot to gain from a continuation of peaceful grain exports from the Black Sea." Corn is following weakness in wheat. There is little international corn demand and also expectations that U.S. farmers could increase corn plantings, he said. (Reporting by Michael Hogan in Hamburg Additional reporting by Naveen Thukral in Singapore Editing by Mark Potter)
Reuters Messaging: michael.hogan.thomsonreuters.com@reuters.net))