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Chicago wheat futures fall, set for 4th week of decline
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Growing expectations of Russia-Ukraine grain export deal
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Argentina drought seen further reducing corn, soybean
yields
(Adds quote in paragraph 3, updates prices)
By Naveen Thukral
SINGAPORE, March 10 (Reuters) - Chicago wheat lost more
ground on Friday with the market poised for its fourth week of
decline on growing expectations of a Black Sea deal, which will
allow Ukraine to continue shipping grains.
Corn and soybeans were also on track for a weekly drop,
although losses were limited by a severe drought dragging down
yields in key supplier Argentina.
"...weak U.S. export sales news plus more talk of an export
deal for Ukraine to continue to export from Black Sea ports are
factors which helped to pressure (prices)," Hightower said in a
report.
The most active wheat contract on the Chicago Board of
Trade (CBOT) slid 0.2% to $6.64-1/2 a bushel, as of 0250
GMT, corn was unchanged at $6.11-1/2 a bushel and soybeans lost 0.2% to $15.08-1/2 a bushel.
The wheat market is down for a fourth week, having lost more
than 15% during the period; soybeans have given up less than 1%
this week and corn is down more than 4%.
The U.S. wheat market has been under pressure from Russian
export competition and expectations that the wartime grain
corridor from Ukraine will be extended beyond this month,
increasing available global supplies.
However, Russia on Thursday said the deal to ensure safe
exports of grain from Ukraine's Black Sea ports was only being
"half-implemented", raising doubts about whether it would allow
an extension of the agreement.
La Niña has ended and ENSO-neutral conditions are expected
to continue through the Northern Hemisphere spring and early
summer of 2023, a U.S. government weather forecaster said on
Thursday, with El Niño possibly forming during summer 2023 and
persisting through the fall.
El Nino is a warming of ocean surface temperatures in the
eastern and central Pacific, which could boost precipitation,
brightening the outlook for U.S. crops.
Extreme drought continues to reduce soybean and corn yields
in Argentina.
The country's soybean production for the 2022/2023
harvesting season is estimated at 29 million tonnes, down from
the 33.5 million tonnes previously estimated, the Buenos Aires
grains exchange said.
The exchange cut its estimate for 2022/23 corn production to
37.5 million tonnes, down from the 41 million tonnes previously
expected.
Commodity funds were net sellers of CBOT corn, wheat, soyoil
and soybean futures contracts on Thursday, traders said. Funds
were net buyers of CBOT soymeal futures, they added. (Reporting by Naveen Thukral; editing by Eileen Soreng and
Sonia Cheema)
