BEIJING, Dec 20 (Reuters) – Chicago soybean futures extended gains on Monday, rising for a fifth consecutive session, as a dry South American weather outlook lends support.
The Buenos Aires grains exchange said last week that Argentina’s central farm belt is set for very high temperatures in the coming days, followed by moderate to heavy rains. This comes after it warned recently about the impact of expected dry weather on soybean and corn production.
Corn and wheat were trading rangebound.
FUNDAMENTALS
* The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 were up 0.3% at $12.89 per bushel around 0140 GMT on Monday. It had hit a three-month top of $12.98 per bushel on Friday.
* Corn Cv1 is also slightly up 0.1% at $5.94 a bushel, while wheat Wv1 was down 0.1% at $7.73-3/4 a bushel.
* World’s largest wheat exporter Russia plans to set its wheat export quota at 8 million tonnes, the country’s economy ministry said on Friday, marking a 1 million tonne reduction from a previously planned level.
* Russia’s wheat export tax formula will have a higher multiplier if prices rise to $375/t and the multiplier will rise further if prices reach $400/t, a proposal on the state website for laws and regulations showed.
* The Argentine government capped the volume of corn and wheat for the 2021/22 cycle that can be exported, in a bid to head off domestic grains shortages and tamp down rising food values in the country, which is battling high inflation.
* Chinese importers have made more purchases of French wheat and barley this week following a slide in prices, with around 10 large vessels thought to have been booked, five European traders said.
* Commodity funds were net buyers of Chicago Board of Trade soymeal, soybean, corn and wheat futures contracts on Friday and net sellers of soyoil futures, traders said. COMFUND/CBT
MARKET NEWS
* Oil prices slumped about 2% in early trade, as surging cases of the Omicron coronavirus variant in Europe and the United States stoked investor worries that new restrictions on businesses to combat its spread may hit fuel demand. O/R
* The U.S. dollar hovered near the highest since July of last year against major peers, after a Federal Reserve official signaled a first pandemic-era interest rate hike could come as early as March. USD/
* Asian share markets fell and oil prices slid, as surging Omicron cases triggered tighter restrictions in Europe and threatened to drag on the global economy into the new year. MKTS/GLOB
(Reporting by Emily Chow; Editing by Rashmi Aich)
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