Band Christopher Walljasper
CHICAGO, April 8 (Reuters) – Chicago wheat, corn and soybean futures strengthened Friday after the United States Department of Agriculture (USDA) assessed global supply and demand, reflecting youimpact of the war in Ukraine on Black Sea exports.
Grain prices remained supported by Russia’s invasion of Ukraine six weeks ago, which blocked large quantities of Ukrainian exports of wheat, corn and sunflower oil. Russia calls its actions in Ukraine a “special operation”.
Soybean and Corn Futures remain high, supported by reduced production in South America and questions about US acreage decisions ahead of planting.
Chicago Board of Trade (CBOT) most active wheat contract Wv1 has been up to 26-1/2 cents for $10.46-1/2 a bushel per 12:24 (1724 GMT).
CBOT soybeans Sv1added 36-3/4 cents to $16.82-1/4 a bushel, while corn CV1firmed 11 cents to $7.68-3/4 a bushel.
Soybean futures climbed as USDA pegged U.S. ending stocks of 25 million bushels at 260 million bushels as South American exports lagged, with exports from Brazil falling 2 .75 million tons to 82.75 million tons.
The report does not reflect the increase in soybean plantings the agency showed in last week’s planting intentions report, the USDA said.
“We’re so strong in beans because they haven’t put in larger acreages. We’re so strong in corn because people think those acreages are going down,” said Mark Gold, managing partner at Top Third. Ag Marketing.
Corn ending stocks were unchanged from March at 1.440 billion bushels.
“The USDA likely surprised trade by leaving US corn exports unchanged despite the situation in Ukraine,” said Don Roose, president of US Commodities.
youKraine is expected to export 19 million tons of wheat this year of production, 1 million less than the USDA’s last estimate, while Russia is expected to increase wheat shipments by 1 million, to 33 million tons.[L2N2W61GW]
U.S. wheat ending stocks are expected to rise by 25 million bushels to 678 million bushels as the high CBOT futures price knocks U.S. wheat out of the world market.
(Reporting by Christopher Walljasper; Additional reporting by Gus Trompiz in Paris and Enrico Dela Cruz in Manila; Editing by Mark Porter)
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