SINGAPORE, Nov 19 (Reuters) – Chicago wheat futures were largely unchanged on Friday, with the market set to end the week on a positive note, underpinned by tightening global supplies.
Soybeans gained ground and the market was poised for a second week of gains.
FUNDAMENTALS
* The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 rose 0.03% to $8.20-1/4 a bushel by 0131 GMT. The market is up 0.4% for the week, with prices hitting their highest since December 2012 earlier this week.
* Soybeans Sv1 have added 2.1% this week, while corn Cv1 has lost 0.7% for the week.
* The International Grains Council on Thursday cut its forecast for 2021/22 global wheat production, partly driven by a diminished outlook for the crop in Iran.
* In its monthly update, the inter-governmental body reduced its 2021/22 world wheat crop outlook by 4 million tonnes to 777 million tonnes.
* Heavy rains are threatening damage to Australia’s harvest, flooding has disrupted export routes in Canada while dry conditions are raising early doubts about production in the United States and the Black Sea region.
* Consultancy Strategie Grains sharply cut its demand forecast for European Union wheat in 2021/22 as high prices were seen eroding exports and leading industrial processors to switch to maize.
* Commodity funds were net sellers of CBOT soybean, corn, wheat and soymeal futures contracts on Thursday, traders said. They were net even in soyoil. COMFUND/CBT
MARKET NEWS
* The S&P 500 and Nasdaq notched record closing highs on Thursday, boosted by upbeat corporate earnings news from companies including Nvidia, while Turkey’s lira weakened further after its central bank cut rates. MKTS/GLOB
DATA/EVENTS (GMT)
0700 UK Retail Sales MM, YY Oct
0700 UK Retail Sales Ex-Fuel MM Oct
(Reporting by Naveen Thukral; editing by Uttaresh.V)
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