By Gus Trompiz and Naveen Thukral
PARIS/SINGAPORE, Dec 1 (Reuters) – Chicago wheat edged higher on Wednesday to recoup some of its steep losses from the previous session as investor concerns about the Omicron coronavirus variant abated.
Soybeans and corn also regained some ground, helped by a rebound in crude oil. O/R
Share prices rose sharply as investors saw buying opportunities following Tuesday’s rout that had been fuelled by fears about the Omicron variant and signs the U.S. Federal Reserve may accelerate bond-buying tapering as inflation risks grow. MKTS/GLOB
In overnight trading ahead of the main U.S. daytime session, the most-active wheat contract on the Chicago Board Of Trade Wv1 was up 0.8% at $7.93-1/2 a bushel by 1306 GMT.
On Tuesday, it closed down 4.2% following a near three-week low.
“In the absence of new fundamental elements, it is the financial actors who are leading the dance for the moment,” consultancy Agritel said in a note.
Wheat has been seen as susceptible to liquidation after investment funds increased long positions last month during a rally to nine-year highs in Chicago and record peaks on Euronext, the European benchmark.
March wheat BL2H2 on Euronext was up 0.8% at 287.75 euros ($325.56) a tonne. It had shed 4% a day earlier when it pulled away from last week’s peak of 311.50 euros, a record for a second-month position BL2c2. GRA/EU
Wheat markets soared in recent weeks as the possibility of more Russian export restrictions and the risk of rain damage to Australia’s crop fanned fears of tight milling wheat supplies.
While traders awaited a clearer picture of Australia’s harvest, wheat tenders issued by Tunisia following Monday’s purchase by Egypt suggested the price fallback may spur fresh import demand. GRA/TEND
CBOT soybeans Sv1 were up 0.8% at $12.26-3/4 a bushel, after hitting their lowest since Nov. 11 in the last session.
CBOT corn Cv1 added 1.0% to $5.73-1/4 a bushel, after slipping on Tuesday to its weakest since Nov. 10.
Commodity funds were net sellers of CBOT wheat, corn, soybean and soyoil futures contracts on Tuesday, traders said. Funds were estimated to be net even in soymeal futures. COMFUND/CBT
Prices at 13065 GMT
Last
Change
Pct Move
End 2020
Ytd Pct Move
CBOT wheat Wv1
793.50
6.25
0.79
640.50
23.89
CBOT corn Cv1
573.25
5.75
1.01
484.00
18.44
CBOT soy Sv1
1226.75
9.50
0.78
1311.00
-6.43
Paris wheat BL2H2
287.75
2.25
0.79
195.50
47.19
Paris maize EMAc1
237.75
0.75
0.32
219.00
8.56
Paris rape COMc1
647.25
2.50
0.39
418.25
54.75
WTI crude oil CLc1
69.21
3.03
4.58
48.52
42.64
Euro/dlr EUR=
1.13
0.00
-0.20
1.2100
-6.50
Most active contracts – Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne
($1 = 0.8839 euros)
(Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Devika Syamnath and David Evans)
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