GRAINS-Wheat at two-week low as Black Sea competition weighs

Kitco Media
By Reuters
Published:
Updated:
Reuters



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Egypt tender highlights attractive Russian wheat prices

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Corn, soybeans ease after 1-week highs on Argentina drought

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Firm dollar also curbs grains amid interest rate worries

(Updates with European trading, changes byline/dateline) By Gus Trompiz and Naveen Thukral PARIS/SINGAPORE, Feb 22 (Reuters) - Chicago wheat futures fell to a two-week low on Wednesday as an Egyptian tender highlighted export competition from the Black Sea region, tempering worries about war disruption to Ukrainian supplies. Corn and soybeans eased after reaching one-week highs this week, with participants monitoring rain forecasts in drought-hit Argentina. A firm dollar, as concern over interest rate hikes hung over financial markets, also curbed Chicago prices. Grain markets were turning their attention to the U.S. Department of Agriculture's annual two-day Outlook Forum starting on Thursday, in which the USDA is expected to release preliminary forecasts for 2023 plantings and production of major U.S. crops. The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 1% at $7.55-1/4 a bushel by 1234 GMT, after earlier touching its lowest since Feb. 8. The lowest offer at an Egyptian state import tender on Wednesday was for Russian wheat, while the only offer of non-Black Sea wheat, for French supplies, was the most expensive, according to traders. "Black Sea origins still remain very competitive," consultancy Agritel said in a note. After concern caused by recent Russian criticism of the Black Sea corridor deal allowing wartime grain exports from Ukraine, traders have increasingly taken the view that the deal will be extended when it comes up for renewal in March.


President Vladimir Putin on Tuesday delivered a nuclear warning to the West over Ukraine, but traders noted the Russian leader also mentioned large Russian grain exports and did not criticise the corridor deal with Ukraine. "Russia has so much wheat to export and I don't think there's too much risk about the corridor from Ukraine," a European trader said. CBOT soybeans edged down 0.2% to $15.40-1/4 a bushel, after reaching its highest since Feb. 13 earlier in the session. Corn was down 0.3% at $6.78-1/4 a bushel, moving back from Tuesday's one-week top. Rain is forecast in part of Argentina in the week ahead, but high temperatures may limit the benefit to parched crops. Brazil, however, is expected to gather a record soybean crop. Brazilian growers had harvested 25% of the soybean area planted for 2022/23 through last Thursday, agribusiness consultancy AgRural said on Monday. (Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Rashmi Aich, Vinay Dwivedi and Emelia Sithole-Matarise)

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