By Naveen Thukral
SINGAPORE, Aug 5 (Reuters) – Chicago wheat futures climbed for a second consecutive session on Friday, with strong demand and tight international provides underpinning the market.
Corn rose for a 3rd straight session, whereas soybeans prolonged gains on considerations over sizzling and dry climate in components of the U.S. Midwest.
“Wheat prices are cheap, given the current tight supply situation, and we see strong demand coming from key importers,” mentioned one Singapore-based dealer.
The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was up 0.7% at $7.87-3/4 a bushel, as of 0313 GMT. Corn Cv1 rose 1% to $6.12 a bushel, whereas soybeans Sv1 added 0.3% to $14.22-1/4 a bushel.
The wheat market hit its lowest since early February at $7.52 a bushel on Wednesday.
For the week, wheat is down 2.5%, corn has given up virtually 1.3% and soybeans have misplaced more than 3%.
Major challenges stay on exports from the Black Sea area whilst Ukrainian grain begins to maneuver out of seaports for the primary time since February.
Three ships carrying a complete of 58,041 tonnes of corn have been authorised to go away Ukrainian ports on Friday as a part of a deal to unblock grain exports, the organisation arranging the operation mentioned on Thursday.
A primary vessel carrying Ukrainian grain set sail from Odesa on Monday, arriving on the Bosphorus Strait some 36 hours later underneath a deal between Russia and Ukraine, brokered by Turkey and the United Nations, that goals to ease a world meals disaster stemming from the warfare.
U.S. weekly wheat internet export gross sales for the brand new advertising 12 months within the week ended July 28 have been 249,900 tonnes and U.S. soybean internet export gross sales have been 410,600 tonnes, consistent with expectations.
Argentina’s 2022/2023 wheat crop acquired a much-needed enhance final week when rains eased drought situations afflicting key agricultural areas, the Buenos Aires Exchange mentioned on Thursday.
Persistently dry situations in current months have pushed the change to chop its estimate for the nation’s planted wheat space 5 instances, down to six.1 million hectares (15 million acres) from the 6.6 million hectares initially anticipated in May.
Concerns over dry climate in components of the U.S. Midwest supported corn and soybeans.
Weather service Maxar in a report on Thursday mentioned its 6-10 outlook indicated drier climate within the central and northeastern Midwest, though rains within the Delta and southeastern Midwest ought to enhance moisture for corn and soybean crops there.
Soybeans in key rising areas of the U.S. Midwest will doubtless face more sizzling and dry situations throughout August, their vital rising month, that might threaten harvest yields, in accordance with climate forecasts.
Commodity funds have been internet consumers of CBOT soybeans, wheat, corn, soymeal and soyoil futures contracts on Thursday, merchants mentioned. COMFUND/CBT
(Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips and Subhranshu Sahu)
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