*
Ukraine Black Sea grain deal extended for at least 60 days
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Brazil to raise biodiesel mandate, ample supplies from
record
soybean crop
(Adds quote in paragraph 3, details and updates prices)
By Naveen Thukral
SINGAPORE, March 20 (Reuters) - Chicago wheat and corn
futures slid on Monday, with prices under pressure after a deal
to export grains from war-torn Ukraine was extended over the
weekend, easing some of the concerns over global supply.
Soybeans ticked lower on ample supplies from newly harvested
record crop in Brazil.
"There wasn't huge amount of doubt about the Black Sea deal
but as far as today's market action goes, I think the extension
of the deal is putting pressure on prices," said Phin Ziebell,
an agribusiness economist at National Australia Bank.
The most-active wheat contract on the Chicago Board of Trade was down 1.3% at $7.01 a bushel, as of 0342 GMT, and corn lost 1% to $6.28 a bushel.
Soybeans eased 0.3% to $14.71-3/4 a bushel.
The deal allowing the safe Black Sea export of Ukrainian
grain was renewed on Saturday for at least 60 days - half the
intended period - after Russia warned any further extension
beyond mid-May would depend on the removal of some Western
sanctions.
The pact was brokered with Russia and Ukraine by the United
Nations and Turkey in July and renewed for a further 120 days in
November. The aim was to combat a global food crisis that was
fuelled in part by Russia's Feb. 24, 2022, invasion of Ukraine
and Black Sea blockade.
Brazil's National Energy Policy Council on Friday raised the
country's mandatory blend of biodiesel in diesel to 12% starting
in April, Mines and Energy Minister, Alexandre Silveira said.
The measure is expected to favour mainly the soybean
processing industry, since about 65% of the total biodiesel was
produced with soyoil in 2022.
Brazil's record soybean crop this season will allow the
nation to boost exports to China while also increasing domestic
soybean processing, Andre Nassar, the chief of Brazil's oilseed
lobby Abiove, told Reuters.
Large speculators switched to a net short position in
Chicago Board of Trade corn futures in the week to March 7,
regulatory data released on Thursday showed.
The Commodity Futures Trading Commission's weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and raised their net long position in soybeans. (Reporting by Naveen Thukral; Editing by Rashmi Aich and Sherry Jacob-Phillips)
Messaging: naveen.thukral.thomsonreuters.com@reuters.net))