SINGAPORE, Feb 1 (Reuters) – U.S. wheat futures found support early Tuesday after slumping more than 3% on Monday to two-week lows on forecasts for decent growing conditions in the U.S. Plains and waning fears of an imminent invasion by Russia into Ukraine.
Chicago soybean and corn futures both eased slightly in quiet trade, but clung close to recent seven-month highs as traders continue to assess how dry conditions in South America may boost U.S. crop demand.
Chicago Board of Trade March wheat futures WH2 were up 0.1% at $7.62 a bushel at 01:35 GMT. Chicago March soybeans SH2 were 0.1% lower at $14.88 3/4 a bushel, while March corn CH2 was down 0.08% at $6.25 1/2.
FUNDAMENTALS
* Agribusiness consultancies AgRural and AgResource on Monday trimmed their forecasts for Brazil’s 2021/22 soybean crop due to bad weather, estimating the expected output below the 130 million-tonne threshold.
* Sovecon, one of the leading agriculture consultancies in Moscow, on Monday raised its forecast for Russia’s wheat exports by 200,000 tonnes to 34.3 million tonnes in the current 2021/22 marketing season which ends on June 30.
* Tensions remain high over the Russia/Ukraine standoff. The United States and Britain overnight said they are prepared to punish Russian elites close to President Vladimir Putin with asset freezes and travel bans if Russia enters Ukraine, as tensions also spilled over at the United Nations.
* Any interruptions to grain flows from the Black Sea region could leave importers scrambling for alternatives such as European Union and U.S. wheat, and fuel food inflation.
* The U.S. dollar fell on Monday, posting its largest daily fall since last November as investors consolidated gains after hitting a 1-1/2-year high on Friday on expectations of a faster pace of rate hikes by the Federal Reserve.
MARKET NEWS
* World stocks climbed higher on Monday as investors digested new optimism from the U.S. Treasury’s top economist that inflationary pressures should ease in 2022 due to weaker demand for goods, easing supply bottlenecks and a receding coronavirus pandemic. MKTS/GLOB
DATA/EVENTS (GMT)
0330 Australia RBA Cash Rate Feb
0700 UK Nationwide house prices Jan
0745 France CPI Prelim YY Jan
0850 France Markt Manufacturing PMI Jan
0855 Germany Markit/BME Mfg PMI Jan
0855 Germany Unemployment Rate SA Jan
0900 EU Markit Mfg Final PMI Jan
0930 UK Markit/CIPS Mfg PMI Final Jan
1000 EU Unemployment Rate Dec
1445 US Markit Mfg PMI Final Jan
1500 US ISM Manufacturing PMI Jan
(Reporting by Gavin Maguire; Editing by Shailesh Kuber)
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