GRAINS-Soybeans little changed, lower Argentina output estimate supports

Kitco Media
By Reuters
Published:
Updated:
Reuters
SINGAPORE, April 12 (Reuters) - Chicago soybean futures were largely unchanged on Wednesday, holding on to last session's gains as the market was supported by the U.S. government's estimate of lower output in key supplier Argentina. Wheat rose slightly after closing marginally lower on Tuesday.


FUNDAMENTALS
* The most-active soybean contract on the Chicago Board of Trade (CBOT) fell half a cent to $14.96-3/4 a bushel, as of 0008 GMT. Wheat gained 0.3% at $6.75-3/4 a bushel and corn was flat at $6.51 a bushel.
* Soybean production in Argentina will fall to a 23-year low and corn production to a five-year low, smaller than previously thought, as a crop-wasting drought decimated fields in the key South American producer, the U.S. government said on Tuesday.
* Argentina's soybean harvest was pegged at 27.00 million tonnes and the corn crop at 37.00 million tonnes, according to the U.S. Department of Agriculture's monthly World Agricultural Supply and Demand Estimates report.
* Argentina has endured severe drought while rival corn and soybean exporter Brazil has seen more favourable conditions.
* In the United States, traders have been grappling with contrasting weather, with early spring planting slowed by damp, cold conditions and some winter wheat crops strained by drought.
* Australian wheat plantings are set for a strong start as better-than-expected rains in parts of the country's grain growing regions have improved soil moisture, traders and analysts said.
* After three years of all-time high wheat production, Australian farmers have started planting the crop this year amid forecasts of El Nino weather, which typically brings dry weather across large parts of the country.
* No ships were inspected on Tuesday under the Ukraine Black Sea grain deal "as the parties needed more time to reach an agreement on operational priorities," the United Nations said, adding that routine inspections were due to resume on Wednesday.
* Commodity funds were net sellers of CBOT corn and wheat futures contracts on Tuesday, traders said. Funds were net buyers of soybeans, soymeal and soyoil futures, traders said. MARKET NEWS
* A gauge of global stocks rose and bond yields edged higher on Tuesday as traders anticipate interest rates will soon peak even as the market bets that the U.S. Federal Reserve will tighten monetary policy further in May to tame inflation. DATA/EVENTS (GMT) 1230 US Core CPI MM, SA March 1230 US Core CPI YY, NSA March 1230 US CPI MM, SA March 1230 US CPI YY, NSA March 1230 US CPI Wage Earner March 1800 Federal Open Market Committee issues minutes from its meeting of March 21-22 (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)

Messaging: naveen.thukral.thomsonreuters.com@reuters.net))
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