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Wheat consolidates after sliding on export competition
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Soybeans supported by China demand, Argentina drought
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Markets weigh recession risks, China COVID policy shift
CHICAGO, Dec 7 (Reuters) - Chicago wheat climbed on technical buying Wednesday after sliding to 13-month lows earlier in the week, as global supplies weigh on U.S. markets.
Soybean futures inched higher, underpinned by export demand optimism and dry conditions in top exporter Argentina.
Corn inched higher, supported by wheat and soy despite from weaker crude oil .
The most-active wheat contract on the Chicago Board of Trade (CBOT) climbed 25 cents to $7.54 a bushel by 11:25 a.m. (1725 GMT).
CBOT corn last added 4-3/4 cents to $6.42 a bushel, while CBOT soybeans gained 11 cents to $14.7-1/2 a bushel.
"After hitting a one year low, I think some traders saw it as a buying opportunity," said Terry Reilly, senior agriculture futures analyst Futures International.
Export demand has been strong this week, though U.S. wheat remains expensive compared to Black Sea supplies.
Mounting Russian exports continue to pressure wheat prices. Shipments from October through December are expected to reach 12.7 million tonnes, up 33% from the same period in 2021, according to agriculture consultancy Sovecon.
Forecasts for a record crop in Australia have also eased global supply concerns and added weight to U.S. wheat markets.
A weaker U.S. Dollar should make U.S. commodities more affordable on the global market, but is still too strong to entice buyers, said Ed Duggan, Senior Risk Management Specialist at Top Third Ag Marketing.
"The problem with the wheat is, we’ve become such a bit player on the export market, you’ve got the dollar at $105, which is a low for six months, but it’s still a dollar at $105," he said.
Soybeans remain supported by optimism that
easing COVID-19 lockdown measures
in China will fuel further exports. (Reporting by Christopher WalljasperAdditional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; editing by Diane Craft)
