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Grain markets await USDA world crop report on Wednesday
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Soybeans underpinned by drought in Argentina
(Updates prices, adds quotes, changes byline, changes dateline
from previous PARIS/SINGAPORE )
By Cassandra Garrison
CHICAGO, 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.
Prices were rebounding after dipping below $7 a bushel, Don
Roose, president of U.S. Commodities in West Des Moines, Iowa,
said, adding that uncertainty over an extension of the Black Sea
export corridor helped support prices.
"I think it's adding a little risk premium back for that," Roose said.
The most-active wheat contract on the Chicago Board of
Trade (CBOT) was up 0.65% at $7.00-1/4 a bushel by 11:30 am CST
(1713 GMT), after earlier sliding to its weakest since September
2021.
CBOT soybeans were down 0.08% at $15.17 a bushel and
corn was flat at $6.37 a bushel.
The wheat market has recently 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 were lower after setting new contract
highs.
Traders are awaiting the USDA's March supply and demand
report on Wednesday for an update on Brazilian crops, which may
help offset losses in Argentina.
(Reporting by Cassandra Garrison, additional reporting by Gus
Trompiz in Paris and Naveen Thukral in Singapore; Editing by
Jane Merriman and Krishna Chandra Eluri)
