Band Gus Trompiz and Naveen Thukral
PARIS/SINGAPORE, April 29 (Reuters) – Chicago corn rose slightly on Friday to hold near a near-decade high, while wheat rallied as unfavorable U.S. crop weather added to concerns over the supplies resulting from Russia’s invasion of Ukraine.
Soybean oil hit a new high as Indonesia’s palm oil export ban continued to rattle edible oil markets already struggling with the loss of Ukrainian sunflower supplies.
The dollar eased from a 20-year high on Thursday, providing some support for grains, although investors were also weighing demand risks, as in other commodity markets, as global inflation and novel coronavirus outbreaks in China threaten growth prospects. XRF/MKTS/GLOB
The most active corn contract CV1 on the Chicago Board of Trade (CBOT) was up 0.1% at $8.14-1/2 a bushel, as of 10:58 GMT, near Thursday’s high of $8.19-3/4 which was its highest high since August 2012.
“While geopolitics and climate risk are linked, nervousness remains in the grain market,” said consultancy Agritel.
Weather forecasts continued to show cool, wet weather across much of the U.S. Corn Belt for the week ahead, drawing attention to planting delays.
Dry weather in central Brazil has also raised concerns about the country’s main corn crop, which, like the last US crop, is seen as essential to help offset the disruption in Ukrainian exports.
CBOT wheat Wv1 rose 1% to $10.97 a bushel, recovering from a dip on Thursday when sluggish U.S. exports and rain forecasts for parched winter wheat areas put pressure on prices.
But the persistent drought in part of the American plains and the reduced supply from Ukraine should support wheat markets.
“There is no reason for wheat prices to fall,” said a senior executive at an international trading firm. “We are seeing supply constraints as well as strong demand.”
CBOT soybeans Sv1 rose 0.9% to $16.99-1/4, supported by the rally in soybean oil BOv1which set a new high at 87.65 cents per pound before falling slightly.
Indonesia should be able to meet its cooking oil shortage in the coming weeks and lift an export ban on palm oil and its refined products in May, a government body said on Thursday. ‘industry.
But vegetable oil markets are still digesting Jakarta’s last-minute policy reversal that extended the reach of the embargo.
Price at 10:58 GMT
End of 2021
Cumulative percentage shift
CBOT wheat Wv1
CBOT corn CV1
CBOT soybeans Sv1
Paris wheat BL2c1
Corn from Paris EMAc1
Paris rape COMc1
WTI crude oil CLc1
Most active contracts – Wheat, corn and soybeans US cents/bushel, Paris futures in euros per tonne
(Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Subhranshu Sahu, Sherry Jacob-Phillips and Krishna Chandra Eluri)
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