Wheat steady with Russian exports, southern hemisphere harvests in focus
Updates at 1229 GMT, changes dateline
PARIS/CANBERRA, Dec 12 (Reuters) -Chicago wheat futures inched up on Thursday as the market weighed uncertainty over Russian export supply against progress in harvesting large crops in Argentina and Australia.
Corn futures ticked down to ease further from a 5-1/2-month high reached on Wednesday, while soybeans edged higher.
Grain prices lacked clear direction from wider markets, with investors awaiting an interest rate decision from the European Central Bank. MKTS/GLOB
The most-active wheat contract on the Chicago Board of Trade Wv1 was up 0.1% at $5.64 a bushel at 1229 GMT, consolidating near a two-week high of $5.69-1/2 hit on Wednesday.
Wheat drew support this week from a U.S. Department of Agriculture (USDA) report, in which the agency lowered its estimate for U.S. ending stocks this season, as well as market chatter that a planned Russian export quota for the second half of the season may be reduced.
Thursday's announcement of a wheat import tender by Saudi Arabia also underpinned the market, raising questions about whether Russian wheat would be competitive for the February-April shipping periods.
However, the Rosario grains exchange on Wednesday raised its estimate for Argentina's 2024-25 wheat harvest, to 19.3 million metric tons from 18.8 million tons.
Production in Australia - which like Argentina is currently harvesting - is also exceeding expectations, though recent rain has damaged grain quality.
"Crops in Argentina and Australia are looking good. That's putting a dampener on markets because they are the key harvest right now," said Commonwealth Bank analyst Dennis Voznesenski.
CBOT corn Cv1 fell 0.2% to $4.47-1/4 a bushel and soybeans Sv1 added 0.1% to $9.96-3/4 a bushel.
Corn has rallied in the past week on brisk demand and Tuesday's USDA report that said improved U.S. exports would push U.S. end-of-season stocks to a two-year low.
Soybeans remained capped by expectations of large harvests in Brazil and Argentina.
Brazilian crop agency Conab on Thursday nudged up its forecast of 2024/25 soybean production to a new record.
In other oilseed markets, February rapeseed COMG5 on Euronext rose 2.3% to 546.75 euros ($573.92) per metric ton.
Traders said Euronext's decision to suspend physical delivery to French river ports for the February contract, following an accident downstream in Germany that has blocked traffic, led operators to cover positions.
Prices at 1229 GMT | |||
Last | Change | Pct Move | |
CBOT wheat Wv1 | 564.00 | 0.75 | 0.13 |
CBOT corn Cv1 | 447.25 | -1.00 | -0.22 |
CBOT soy Sv1 | 996.75 | 1.25 | 0.13 |
Paris wheat BL2Z4 | 218.75 | 0.00 | 0.00 |
Paris maize EMAc1 | 208.75 | 0.25 | 0.12 |
Paris rapeseed COMc1 | 546.75 | 12.25 | 2.29 |
WTI crude oil CLc1 | 70.35 | 0.06 | 0.09 |
Euro/dlr EUR= | 1.05 | 0.00 | 0.03 |
Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per metric ton | |||
($1 = 0.9527 euros)
Reporting by Gus Trompiz in Paris and Peter Hobson in Canberra; Editing by Sumana Nandy and Shailesh Kuber
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