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Wheat rises for fourth day on tightening world supplies; soybeans firm

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SINGAPORE/GENEVA — Chicago wheat futures

gained more ground on Tuesday, with the market climbing for a

fourth consecutive session as tightening global supplies

underpinned the market.

Soybeans hit a one-week high, although gains were limited by

ample supplies for a rapidly advancing U.S. harvest.

The most-active wheat contract on the Chicago Board Of Trade

(CBOT) was up 0.9% at $7.43 a bushel, as of 1055 GMT,

after closing up 0.3% on Monday.

Soybeans added 0.4% to $12.26 a bushel, after climbing

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to $12.29 a bushel earlier in the session, their highest since

Oct. 12. Corn rose 0.3% to $5.33-1/2 a bushel.

Wheat prices have remained strong since eight-year highs hit

in August and were expected to remain firm in the next future.

“Wheat is the most bullish market for me today,” Dan Basse,

president of consultancy AgResource Co, said at the GrainCom

conference in Geneva, citing strong global demand and a plunge

in spring wheat production that are expected to erode stocks in

major exporting countries.

“The EU can’t keep exporting at the pace that it is,” he

said.

European Union wheat exports have surged in the early part

of the 2021/22 season as strong importer demand, a weakening

euro and relatively high Russian prices boosted EU shipments.

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Russian wheat export prices were stable last week after 13

weeks of consecutive gains, the IKAR agriculture consultancy

said in a note on Monday.

Russia, the top global wheat exporter, may increase its

wheat crop to 80.7 million tonnes in 2022 from 75.5 million

tonnes in 2021, Sovecon, one of the leading agriculture

consultancies in Moscow, said in a note.

China’s wheat imports plunged in September from the previous

year, customs data showed on Monday, as elevated international

wheat prices and falling domestic corn prices curbed demand for

overseas shipments.

The U.S. soybean harvest was 60% complete as of Sunday, the

U.S. Department of Agriculture (USDA) said in a weekly crop

progress report on Monday, ahead of the five-year average of 55%

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but behind the average estimate of 62% in a Reuters analyst

poll.

The U.S. corn crop was 52% harvested, the USDA said, ahead

of the five-year average of 41% but behind the average analyst

expectation of 54%.

Commodity funds were net buyers of CBOT corn, soyoil,

soybean, soymeal and wheat futures contracts on Monday, traders

said.

Prices at 1055 GMT

Last Change Pct

Move

CBOT wheat 743,00 6,75 0,92

CBOT corn 533,50 0,75 0,14

CBOT soy 1226,00 4,50 0,37

Paris wheat Dec 275,00 1,00 0,36

Paris maize Nov 246,50 1,25 0,51

Paris rape Nov 680,50 6,75 1,00

WTI crude oil 83,40 0,96 1,16

Euro/dlr 1,17 0,00 0,41

Most active contracts – Wheat, corn and soy US

cents/bushel, Paris futures in euros per tonne

(Reporting by Naveen Thukral, additional reporting by Gus

Trompiz in Geneva; Editing by Rashmi Aich and Susan Fenton)

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