By Gavin Maguire
SINGAPORE, Feb 2 (Reuters) – Chicago March 2022 soybean futures extended to fresh life-of-contract highs of $15.39 a bushel in early trade on Wednesday, as the market continues adjusting to the prospects of higher demand for U.S. supplies following crop issues in South America.
Earlier this week, key consultancies downgraded their soy crop estimates from South America, underscoring the likelihood that global crop consumers will draw more supply from North America over the coming year.
For the Chicago Board of Trade March 2022 soybeans contract the overnight high was a record. On a continuous most-active contract basis, the $15.39 peak was the highest since June 11, 2021. March soymeal SMH2 and soy oil BOH2 also stretched to their highest since last summer.
Chicago corn also rose but lagged the soy complex, while wheat traded mixed in quiet trade.
FUNDAMENTALS
* The most-active soybean contract Sv1 was 0.28% up at $15.32.75 a bushel, as of 02:00 GMT. Most active wheat Wv1 was down 0.16% to $7.67-1/2 a bushel. Corn Cv1 was up 0.04% at $6.35 a bushel.
* Soft wheat exports from the European Union so far this season had reached 16.64 million tonnes by Jan. 30, weekly official data showed on Tuesday, up 1 million tonnes from the previous update after delayed French figures were incorporated.
* Egypt is considering replacing a popular bread subsidy with cash payments for the poor to protect the budget from soaring global wheat prices, but domestic inflation and a history of protests could make the government opt for a less ambitious reform.
* French dairy cooperative Sodiaal said on Tuesday it would close two production sites, cut 316 jobs and invest 600 million euros ($675 million) over five years as part of a wide restructuring plan due to overcapacity.
MARKET NEWS
* Global equity markets wavered on Tuesday, as a new month saw investors weigh strong earnings from big-name U.S. companies against mixed economic data and inflation worries.
While U.S. job openings increased to near record highs in December, a measure of U.S. manufacturing activity fell to a 14-month low in January amid an outbreak of COVID-19 infections, supporting views that economic growth lost steam at the start of the year. MKTS/GLOB
DATA/EVENTS (GMT)
1000 EU HICP Flash YY Jan
1000 EU HICP-X Flash YY Jan
(Reporting By Gavin Maguire; Editing by Rashmi Aich)
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