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Expectations of China easing COVID-19 curbs support corn, soy
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Wheat market falls to 13-month low as Black Sea supply weighs
CHICAGO, Dec 5 (Reuters) - Chicago wheat dropped on Monday, pressured by higher global supplies despite stronger-than-expected weekly U.S. exports, analysts said.
Corn eased, pressured by lower wheat, though dry conditions in South America added support. Soybeans ended lower, underpinned by export demand and strong meal trade, though wheat weighed on the oilseed as well, traders said.
The most-active wheat contract on the Chicago Board of Trade (CBOT) lost 22 cents to settle at $7.39 a bushel, after reaching $7.34, the lowest for a most-active contract since Oct. 18, 2021.
Soybeans fell 3/4 cent to $14.37-3/4 per bushel, while corn sank 5-3/4 cents to settle at $6.40-1/2 a bushel, after falling to $6.37-3/4, its lowest level since Aug. 23.
Russian wheat export prices fell last week amid a record harvest in Russia and active supplies from the Black Sea, analysts said.
"The largest exporter in the world is setting the price tone, and it’s lower," said Don Roose, president of U.S. Commodities.
Australia is expected to produce a record wheat crop of 62 million tonnes this year, according to the federal Australian Bureau of Agricultural and Resource Economics (ABARES), despite widespread flooding in eastern regions of the country.
Ukraine's wheat exports fell to 1.58 million tonnes in November from 1.98 million tonnes in October, the UGA Ukrainian grain traders union said on Monday.
Meanwhile Pakistan plans to import 450,000 tonnes of wheat from Russia ahead of the next crop season.
Corn and soybean futures followed lower, though losses were limited on adverse weather in key producing areas of South America, including a prolonged drought that has left over a third of early planted soybeans in Argentina's core farming region in regular-to-poor condition.
"Beans tried to follow through to the upside several times today, and they’re just not able to hold onto the strength," said Ted Seifried, vice president at Zaner Group.
"We’re not getting global end users concerned enough to step up and make purchases. At least for now, there’s no sense of urgency."
Soybeans also found strength in export optimism, as U.S. exporters sold 130,000 tonnes of soybeans for delivery to China, according to the U.S. Department of Agriculture.
Further easing of COVID-19 quarantine rules in some Chinese cities could increase demand for U.S. commodities, traders said.
China is set to announce the further easing of its COVID curbs as early as Wednesday, sources told Reuters.
During the week ended Dec. 1, U.S. exporters prepared 334,653 tonnes of wheat for export, beating expectations in a Reuters poll of analysts.
Corn export inspections of 524,313 tonnes and soybean inspections of 1.72 million tonnes were within trade expectations. (Reporting by Christopher Walljasper; editing by Jonathan Oatis)
