*
Chicago wheat futures hit lowest since mid-July, 2021
earlier
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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 7, updates prices)
By Naveen Thukral and Sybille de La Hamaide
SINGAPORE/PARIS, March 10 (Reuters) - Chicago wheat
futures held steady after falling earlier on Friday, but were
still poised for their 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.
The most active wheat contract on the Chicago Board of Trade
(CBOT) was virtually unchanged at $6.66 a bushel as of
1200 GMT, after falling as low as $6.62-3/4 a bushel, its lowest
level since mid-July, 2021.
Corn was down 0.2% at $6.10-1/2 a bushel and soybeans lost 0.4% to $15.04-3/4 a bushel.
The wheat market has lost more than 15% during the period;
soybeans have given up some 9% over the same period while corn
is down more than 10%.
The U.S. and European wheat markets have 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.
"For the moment, as negotiations are still in progress,
operators still favour a renewal of the export corridor from
Ukraine," French consultancy Agritel said in a note.
In Europe, the benchmark May contract on Paris-based
milling wheat futures was trading at a more than one-year low at
261.50 euros ($276.75) a tonne.
Still, 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.
Extreme drought continues to reduce soybean and corn yields
in Argentina, the Buenos Aires grains exchange said, cutting its
estimate for the country's 2022/23 soybean production to 29
million tonnes, against the 33.5 million tonnes seen previously
while corn production was pegged at 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. Prices at 1200 GMT
Last Change Pct Move CBOT wheat 666,00 0,25 0,04 CBOT corn 610,50 -1,00 -0,16 CBOT soy 1504,75 -6,00 -0,40 Paris wheat 262,00 -1,50 -0,57 Paris maize 257,50 -2,75 -1,06 Paris rapeseed 487,50 -11,50 -2,30 WTI crude oil 75,15 -0,57 -0,75 Euro/dlr 1,0588 0,001 0,076 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne
(Reporting by Naveen Thukral; editing by Eileen Soreng, Sonia Cheema and Emelia Sithole-Matarise)
Messaging: naveen.thukral.thomsonreuters.com@reuters.net))