GRAINS-Wheat at three-week low, soybeans ease

Kitco Media
By Reuters
Published:
Updated:
Reuters



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Russia says Black Sea grain deal may be nearly over

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Parts of drought-hit Argentine soy fields to go unharvested

(Updates with European trading, changes byline/dateline) By Gus Trompiz and Naveen Thukral PARIS/SINGAPORE, April 14 (Reuters) - Chicago wheat eased on Friday to a new three-week low as the market remained unperturbed by Russia's warnings it could pull out of a Black Sea grain deal, focusing on sluggish export demand and improving U.S. spring weather. Soybeans edged down after Thursday's one-week high, with a record Brazilian harvest tempering concern about drought losses in Argentina. Chicago corn was mixed, with nearby futures firm and new-crop positions down slightly as the market assessed healthy exports and signs of accelerating spring planting. The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 0.4% at $6.64-1/4 a bushel by 1150 GMT. It earlier fell to its lowest since March 24 at $6.61-1/4, below a previous three-week trough on Thursday. Euronext wheat was little changed near Thursday's three-week low. Russia's foreign ministry on Thursday said there would be no extension of the UN-brokered Black Sea grain deal beyond May 18 unless the West removed obstacles to Russian grain and fertiliser exports. A senior Russian diplomat, meanwhile, said on Friday the West still has time to remove such obstacles. "Wheat, both that traded on the CBOT and on Euronext, is priced only marginally above its March low, with which the market continues to more or less ignore the threat on the part of Russia to terminate the grain deal with Ukraine," Commerzbank analysts said. Ongoing Ukrainian shipments through the corridor, despite inspection delays, and large Russian exports have tempered immediate worries about Black Sea wheat trade. Weekly U.S. wheat export sales near the low end of market expectations also maintained a subdued mood in the market. Warmer, drier weather for U.S. spring planting, including spring wheat, were also curbing prices, taking attention away from poor conditions for hard red winter wheat in the parched southern Plains. CBOT soybeans fell 0.3% to $14.96-3/4 a bushel. Most-active corn added 0.5% to $6.555-3/4 a bushel. Argentina's Buenos Aires grains exchange on Thursday said farmers would likely leave large tracts of soy fields unharvested due to damage from a historic drought. But Brazilian farmers will produce record volumes of soybeans and corn this season, state statistics agency Conab said on Thursday. The U.S. government announced large corn export sales to China on Thursday.



(Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Susan Fenton)

Messaging: gus.trompiz.thomsonreuters.com@reuters.net))
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