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Grain markets await USDA world crop report on Wednesday
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Investors also cautious before Fed chief's speech
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Soybeans underpinned by drought in Argentina
(Updates with European trading, changes byline/dateline)
By Gus Trompiz and Naveen Thukral
PARIS/SINGAPORE, March 7 (Reuters) - Chicago wheat
futures edged higher on Tuesday, consolidating above a 17-month
low as the market assessed mixed growing conditions in the U.S.
Plains and awaited further direction from U.S. government crop
forecasts.
Corn and soybeans were also little changed, with crop
markets partly reflecting caution among investors before a
speech by Federal Reserve Chair Jerome Powell on Tuesday that
may give another steer on U.S. interest rate policy. The most-active wheat contract on the Chicago Board of Trade
(CBOT) was up 0.07% at $6.95-3/4 a bushel by 1105 GMT, after
sliding to its weakest since September 2021 on Monday.
CBOT soybeans were up 0.03% at $15.29-1/2 a bushel and
corn edged up 0.04% to $6.37-3/4 a bushel.
The wheat market has been pressured by Russian export
competition and expectations that a wartime grain corridor from
Ukraine will be extended beyond this month.
Ukraine has started online talks with partners on extending
the Black Sea agreement, a senior Ukrainian government source
said on Tuesday.
"The decline in Russian prices is weighing on the whole
international export market," consultancy Agritel said, adding
traders were nonetheless awaiting progress in discussions to
extend the Black Sea shipping deal.
Weather forecasts projecting showers in some U.S. wheat
belts have also curbed prices.
But weekly U.S. Department of Agriculture (USDA) data on
Monday showing a decline in winter wheat conditions in the U.S.
producing state, Kansas, kept the focus on persistent drought in
part of the U.S. Plains.
Soybeans remained underpinned by drought in Argentina, where
heat is seen limiting any benefit to crops from light showers.
CBOT soymeal futures set new contract highs on Tuesday, with
May futures rising to $498 per short ton.
"Traders are adjusting their positions ahead of tomorrow's
USDA monthly report where Argentina's production is expected to
be revised down," Agritel said.
The USDA's March supply and demand report is also being
watched for an update on Brazilian crops, which may help offset
losses in Argentina.
(Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Rashmi Aich, Subhranshu Sahu and Jane Merriman)
Messaging: gus.trompiz.thomsonreuters.com@reuters.net))