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Wheat close to one-week excessive on sturdy demand, Black Sea export deal uncertainty

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March 15, 2023
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SINGAPORE — Chicago wheat futures rose for a fourth consecutive session on Wednesday, buying and selling near a one-week excessive hit within the final session, as sturdy demand and uncertainty over a Black Sea grain export deal underpinned the market.

Corn and soybeans rose for a second straight session.

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FUNDAMENTALS

* Probably the most-active wheat contract on the Chicago Board of Commerce (CBOT) added 0.2% to $6.97-3/4 a bushel, as of 0107 GMT, not removed from Tuesday’s one-week excessive of $6.99-3/4 a bushel.

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* Corn added 0.7% to $6.25 a bushel and soybeans gained 0.3% at 14.98 a bushel.

* Talks continued to increase the deal to permit grain shipments from Ukraine’s Black Sea ports forward of a deadline later this week, the United Nations and Turkey mentioned on Tuesday, after Kyiv rejected a Russian push for a lowered 60-day renewal.

* Russia and Ukraine are among the many world’s largest grain exporters and the creation of the hall has helped cool international meals commodity costs that hit document highs after Russia invaded Ukraine a 12 months in the past.

* Final week’s dip in grain costs to multi-month lows appeared to have spurred export enterprise. Algeria, Tunisia and Jordan purchased wheat this week, European merchants mentioned, and the U.S. Division of Agriculture on Tuesday confirmed non-public gross sales of 612,000 tonnes of U.S. corn to China.

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* Brazil’s corn exports fell sharply in February as soybean shipments take middle stage and Chinese language patrons flip to nations like the USA and Ukraine for provides.

* Commodity funds have been web patrons of CBOT corn, wheat, soyoil and soymeal futures contracts on Tuesday and have been web even in soybean futures, merchants mentioned.

MARKET NEWS

* World shares stemmed a five-session rout on Tuesday as financial institution shares rebounded and closely-watched U.S. inflation information was in keeping with expectations, bolstering bets of a smaller rate of interest hike by the Federal Reserve at its assembly subsequent week.

DATA/EVENTS (GMT) 0200 China City Funding (YTD) YY Feb 0200 China Retail gross sales YY Feb 0200 China Unemp Fee City Space Feb 0745 France CPI (EU Norm) Closing MM, YY Feb 1100 EU Reserve Belongings Whole Feb 1230 US PPI Machine Manuf’ing Feb 1230 US Retail Gross sales MM Feb (Reporting by Naveen Thukral; Enhancing by Rashmi Aich)

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