Wheat rebounds on Black Sea supply worries; corn, soybeans firm

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SINGAPORE — Chicago wheat rose on Monday as prices gained for two out of three sessions with Russia-Ukraine war and dry weather in parts of the U.S. grain belt, raising concerns over global supplies.

Corn and soybeans climbed around 1%.

FUNDAMENTALS

* The Chicago Board of Trade’s (CBOT) most-active wheat contract rose 0.8% to $10.72-1/4 a bushel, as of 0128 GMT. The market climbed to an all-time high of 13.63-1/2 a bushel earlier this month.

* Corn added 1% to $7.49 a bushel and soybeans rose 1% to $16.85-1/4 a bushel.

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* The agricultural markets will likely consolidate at high prices until it becomes clearer how long the Ukraine conflict may last

* Grain prices have been volatile since Russia’s invasion of Ukraine as importers are heavily reliant on supplies shipped from the Black Sea.

* Russian and Ukrainian forces fought for the Ukrainian port city of Mariupol on Sunday, where residents are trapped with little food, water and power, while Ukraine’s president appealed to Israel for help in pushing back Russia’s assault.

* A World Food Programme official said on Friday food supply chains in Ukraine were collapsing, with key infrastructure such as bridges and trains destroyed by bombs and many grocery stores and warehouses empty.

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* Traders are also keeping an eye on dry weather in the U.S. Plains and waiting for the U.S. Department of Agriculture to issue reports on March 31 on U.S. planting intentions and grain stocks.

* In Argentina, farmers could be hit by a third straight La Nina weather phenomenon, the Rosario grains exchange said, a potential blow for the upcoming 2022/23 season. The climate pattern generally brings lower rainfall in key farming regions.

* However, some 92% of French soft wheat crops were in good or excellent condition by March 14, unchanged from a week earlier and above a year-ago rating of 87%, farm office FranceAgriMer said on Friday.

* Large speculators cut their net long position in CBOT corn futures in the week to March 15, regulatory data released on Friday showed.

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* The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and cut their net long position in soybeans.

* China’s soybean imports from Brazil in the first two months of 2022 rose significantly from the corresponding period last year, customs data showed on Sunday.

* The world’s top buyer of soybeans, China brought in 3.51 million tonnes of the oilseed from Brazil, up 241% from 1.03 million tonnes in the previous year, curbed by excessive rains.

MARKETS NEWS

* Asian share markets started the week in a cautious mood on Monday as investors clung to hopes for an eventual peace deal in Ukraine, but the fighting raged on with no sign of stopping.

DATA/EVENTS (GMT) 0700 Germany Producer Prices YY, MM Feb (Reporting by Naveen Thukral)