Hopes China will ease COVID-19 rules boost financial
Corn slips on export demand concerns, soybeans ease
Wheat consolidates after slide on fund selling, slow
WINNIPEG, Manitoba, Nov 29 (Reuters) - Chicago wheat
traded steady on Tuesday after the previous day's three-month
low, as investors saw hope that China will ease measures to
counter COVID-19 infections after rare protests in the country
unsettled markets a day earlier.
Corn and soybeans dipped as traders weighed mixed weather
conditions for South America's crops.
Chicago Board of Trade wheat inched up half a cent to
$7.81-1/4 a bushel at 12:02 p.m. CST (6:02 p.m. GMT) holding
above Monday's low of $7.73-1/4.
Corn was down 0.3% at $6.69-1/2 a bushel, with traders
noting concerns about weak export demand for U.S. supplies. The
most-active soybean contract was down 0.2% at $14.54-1/4 a
bushel, after earlier touching its highest since Nov. 7.
"Wheat (selling) just got overdone, and there's just a
little bit of optimism now," said Brian Basting, economist at
Advance Trading, adding that investors were covering wheat short
positions. "I don't see anything fundamentally different."
A senior Chinese health official said on Tuesday that public
complaints about COVID-19 controls stem from overzealous
implementation, fuelling investor expectations that Beijing may
ease restrictions that have prompted unusual public protests.
China is one of the world's largest wheat importers and
investors have been concerned that COVID cases and protests
could slow its economic growth projections.
Investors were reacting to "signs this morning from Chinese
officialdom that a cautious easing will remain underway," Saxo
Bank said in a note.
"This has inspired a comeback in some commodities."
Wheat has been pressured by investment funds' short
positions and cheaper supplies from Russia and elsewhere in the
Black Sea region.
Purchases in recent days by importers including Egypts
state buyer GASC and Turkey's state grain board TMO have
underlined competitive prices for Black Sea origins, despite
disruption caused by Russia's invasion of Ukraine.
The U.S. Department of Agriculture's (USDA) office in Brazil
has forecast the country will produce a record 126 million
tonnes of corn in 2022/23.