MARKET DEVELOPMENT
GRAINS-Wheat rises to approach 9-year high, soybeans and corn fall
GRAINS-Wheat rises to approach 9-year high, soybeans and corn fall
15.11.2021 (www.nasdaq.com) - By Michael Hogan
HAMBURG, Nov 15 (Reuters) - Chicago wheat rose on Monday, still trading close to its highest in almost nine years on tightening global supplies and robust import demand.
Soybeans and corn fell on selling pressure after Friday's gains.
Chicago Board of Trade most-active wheat Wv1 rose 0.4% to $8.20-1/2 a bushel at 1204 GMT after on Friday hitting $8.26-3/4, its highest since December 2012.
Soybeans Sv1 fell 0.1% to $12.42-3/4 a bushel after surging about 2% on Friday. Corn Cv1 fell 0.1% to $5.76-3/4 a bushel.
"Wheat is still underpinned by the combination of tightening global export supplies and continuing strong import demand," said Matt Ammermann, StoneX commodity risk manager.
"Russia has indicated it will seek to restrain wheat exports and there is concern about southern hemisphere supplies including the impact of rain in Australia. EU exports are running at a rate which is likely to be unsustainable."
"But high prices have not yet caused serious demand rationing, with Iraq indicating it may make big purchases and a new purchase tender from Algeria issued on Saturday. The question is when more export demand will be switched to the U.S."
Algeria has issued an international tender for a nominal 50,000 tonnes, but the country often buys considerably more in its tenders than the nominal volume sought.
Iraq will issue an international tender to buy 500,000 tonnes of wheat in December or early 2022.
Soybeans were supported last week by soaring demand for the animal feed soymeal after transport bottlenecks and labour shortages.
"Soybeans and corn are seeing some selling pressure after their rises on Friday," Ammermann said. "Soybeans are still looking well underpinned by high soymeal prices with U.S. crushings expected to remain large."
"But overall favourable weather for Brazil's crop is likely to limit soybean rises. Markets also need evidence of more Chinese buying of U.S. soybeans."(Reporting by Michael Hogan in Hamburg, additional reporting by Naveen Thukral in Singapore, editing by Krishna Chandra Eluri)
https://www.nasdaq.com/articles/grains-wheat-rises-to-approach-9-year-high-soybeans-and-corn-fall-2021-11-15