Chicago steady after slide as jobs data, Black Sea supply in focus

Chicago steady after slide as jobs data, Black Sea supply in focus

7 Oct    Finance News

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PARIS/SINGAPORE — Chicago wheat, corn and soybeans were

higher on Friday, steadying after a day-earlier slide as investors braced for

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U.S. jobs data to be the latest gauge of recession risks, while traders assessed

risks to Black Sea grain supply.

The most-active wheat contract on the Chicago Board of Trade (CBOT)

was up 1.4% at $8.91-1/2 a bushel by 1152 GMT, recovering from a one-week low on

Thursday.

CBOT corn ticked up 0.4% to $6.78-1/4 a bushel after reaching a

one-week trough earlier on Friday. Soybeans added 0.2% as they

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consolidated above a 2-1/2 month low struck in the previous session.

Remarks by U.S. President Joe Biden about a recent nuclear weapons warning

by Russia over the war in Ukraine, and adverse growing conditions in Ukraine and

Russia, put attention back on risks to crucial Black Sea supplies.

Wheat prices have been curbed since the summer by increasing volumes shipped

from Ukraine through the Black Sea corridor.

“As long as uncertainty remains over whether the sea corridor for grains

exports that was negotiated with Russia will be extended beyond November,

concerns about supply are likely to persist,” Commerzbank analysts said.

Financial markets are gearing up for monthly U.S. employment data that could

influence the scope of further interest rate rises and the chances of an

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economic recession.

Corn and soybean markets have been pressured this week by favorable weather

for the U.S. harvest and expectations of bumper crops in rival exporter Brazil.

Uncertainty over Chinese demand was also hanging over the soybean market.

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China’s soybean imports are likely to drop to their lowest in more than two

years this month, according to two traders and Ole Houe, director of advisory

services at agriculture brokerage IKON Commodities in Sydney.

Prices at 1152 GMT

Last Change Pct End Ytd Pct

Move 2021 Move

CBOT wheat 891.50 12.50 1.42 770.75 15.67

CBOT corn 678.25 2.75 0.41 593.25 14.33

CBOT soy 1360.00 2.00 0.15 1339.25 1.55

Paris wheat 351.75 6.75 1.96 276.75 27.10

Paris maize 339.25 2.00 0.59 226.00 50.11

Paris rape 621.00 4.25 0.69 754.00 -17.64

WTI crude oil 89.48 1.03 1.16 75.21 18.97

Euro/dlr 0.98 0.00 0.06 1.1368 -13.85

Most active contracts – Wheat, corn and soy US cents/bushel,

Paris futures in euros per tonne

(Reporting by Naveen Thukral; Editing by Savio D’Souza and Mark Potter)

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