Updates with European trading, adds Paris to dateline
PARIS/BEIJING, Dec 23 (Reuters) – Chicago soybeans and corn were little changed on Thursday, consolidating after a rally to multi-month highs fuelled by dry weather in South America.
Wheat inched lower after sharp gains this week that were also supported by a report Ukraine could limit milling wheat exports in coming months.
Grain futures were facing chart resistance while lacking impetus from wider markets, which consolidated as investors continued to assess the potential impact of the Omicron coronavirus variant. MKTS/GLOB
Traders were also awaiting weekly U.S. grain export data at 1330 GMT for a demand update ahead of Friday’s Christmas holiday closure on U.S. markets. USDA/EST
The most-active soybean contract Sv1 was up 0.1% at $13.36 per bushel by 1120 GMT, after earlier in the session reaching a new four-month high.
CBOT corn Cv1 was 0.3% higher at $6.04 a bushel, near Wednesday’s 5-1/2 month peak.
Weather forecasts showing little rain relief in coming days in southern Brazil, Paraguay and Argentina have caused concern about corn and soybean crops, although abundant rain in northern Brazil could offset some losses.
“The La Nina weather pattern could spread in Brazil and Argentina by harvest time and reduce the crops,” a European trader said.
CBOT wheat Wv1 was down 0.2% at $8.12-3/4 a bushel, after reaching a near three-week top earlier in the day. In Europe, Euronext March wheat BL2H2 was 0.3% lower at 291.50 euros ($329.95) a tonne after earlier touching a new two-week high.
Major global grain producer Ukraine will consider limiting milling wheat exports in the first half of 2022, with officials expected to decide on the issue in mid-January, two sources familiar with the discussions told Reuters.
That added to uncertainty over availability of supplies from the Black Sea export zone as Russia plans to introduce a quota from mid-February and considers increasing an export levy.
Prices at 1120 GMT
Ytd Pct Move
CBOT wheat Wv1
CBOT corn Cv1
CBOT soy Sv1
Paris wheat BL2H2
Paris maize EMAc1
Paris rape COMc1
WTI crude oil CLc1
Most active contracts – Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne
($1 = 0.8835 euros)
(Reporting by Gus Trompiz in Paris and Emily Chow in Beijing; Editing by Vinay Dwivedi)
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