By Julie Ingwersen
CHICAGO, Aug 10 (Reuters) – U.S. wheat futures rose greater than 2% on Tuesday as European wheat markets climbed on concern about tightening world provides, merchants stated.
Soybean futures firmed on renewed export demand for U.S. provides whereas corn ended modestly decrease, pressured by better-than-expected weekly U.S. crop situation scores.
Chicago Board of Commerce September wheat futures WU1 settled up 15-3/four cents at $7.27 per bushel. CBOT November soybeans SX1 ended up 7 cents at $13.36-3/four a bushel whereas benchmark December corn CZ1 fell half of cent to finish at $5.53-1/four a bushel.
CBOT wheat superior as Euronext wheat futures set contract highs on worries about tightening world provides, after rain affected the milling high quality of the French harvest and costs rose in high exporter Russia.
The U.S. Division of Agriculture is about to launch up to date month-to-month provide/demand reviews on Thursday, and analysts surveyed by Reuters on common anticipate the company to decrease its forecasts of 2021/22 U.S. and world wheat ending shares.
“The wheat market adopted Europe greater immediately amid expectations that USDA will slash manufacturing amongst main exporters Thursday,” Arlan Suderman, StoneX chief commodities economist, wrote in a consumer observe.
CBOT soybean futures climbed after the USDA confirmed non-public gross sales of 132,000 tonnes of U.S. soybeans to China and one other 130,000 tonnes to unknown locations, the newest in a flurry of current U.S. soy gross sales.
“Soybeans are being supported by hopes of extra U.S. gross sales to China,” stated Matt Ammermann, StoneX commodity threat supervisor. “China merely has a requirement to buy so much and the U.S. is concerning the most cost-effective and the only high-volume soybean vendor on the earth now.”
Corn futures sagged after the USDA late Monday rated 64% of the U.S. corn crop in good to glorious situation, up 2 proportion factors from the earlier week, whereas most analysts had anticipated no change.
Scores surged in Illinois, the No. 2 U.S. producer, with 79% of the state’s corn seen as good-to-excellent, up from 68% the earlier week, a doable signal of enhancing yield prospects. US/COR
Nonetheless, futures have been underpinned by reminders of tightening provides in Brazil, the place authorities crop provide company Conab slashed its estimate of the South American nation’s 2020/21 complete corn output to 86.650 million tonnes, from 93.385 million a month in the past.
Additionally supportive, the USDA confirmed gross sales of 182,880 tonnes of U.S. corn to Mexico. GRA/TEND
(Further reporting by Michael Hogan in Hamburg and Colin Packham in Canberra; enhancing by Susan Fenton and Jonathan Oatis)
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