Hope China easing COVID-19 rules buoys commodities
Wheat lifted by short-covering but down nearly 10% in November
Soybeans rise on fresh China sales, corn down on export concerns
WINNIPEG, Manitoba, Nov 30 (Reuters) - Chicago wheat rose for a second
straight session on Wednesday, supported by end-of-the-month short-covering and
investor hopes that China will loosen COVID-19 rules, although the grain was
poised to decline in November on competition from Black Sea supplies.
Soybeans also ticked up, touching a two-month peak, as optimism that China
will ease restrictions that have triggered rare public protests boosted
expectations for demand in the massive commodity importer.
U.S. exporters sold 136,000 tonnes of soybeans for delivery to China during
2022/23, the U.S. Department of Agriculture said.
Gains were limited as participants looked ahead to a speech by the U.S.
Federal Reserve chief later on Wednesday.
The most-active wheat contract on the Chicago Board of Trade (CBOT)
was up 1.9% at $7.96-1/2 a bushel by 11:23 a.m. CST (5:23 p.m. GMT).
"What we're seeing in wheat more than anything is month-end position
squaring," said Agrivisor market analyst Karl Setzer, adding that Chicago wheat
looks technically oversold.
Concerns about dry conditions harming U.S. and Argentine wheat crops are
mostly offset by a bumper Canadian harvest and improving Australian crop, Setzer
The U.S. Department of Agriculture, in its last weekly crop progress report
for 2022, on Tuesday rated 34% of U.S. winter wheat in good to excellent
condition, up 2 percentage points from the previous week but still the weakest
score for this time of year in a decade.
CBOT soybeans added 0.9% to $14.72-3/4 a bushel.
Corn dropped 0.4% to $6.67 a bushel on concerns about export
demand and weighed down by profit-taking by funds holding long positions, Setzer
For the month, wheat is down nearly 10%, soybeans have added nearly 4%
and corn has lost 3.5%.
Guangzhou on Wednesday relaxed COVID prevention rules in several districts,
a move that followed protests in the southern Chinese city.
Cheap supplies from Russia and elsewhere in the Black Sea region were
keeping a lid on wheat futures by maintaining competition for U.S. exports.
(Reporting by Rod Nickel in Winnipeg, Manitoba, Gus Trompiz in Paris and Naveen
Thukral in Singapore; Editing by Subhranshu Sahu, Maju Samuel and Mark Porter)