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Global grain market: wheat rose on Friday, corn and soybeans fell due to profit-taking
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Global grain market: wheat rose on Friday, corn and soybeans fell due to profit-taking

Wheat futures on the Chicago Mercantile Exchange have risen following export demand from China. Meanwhile, soybean and corn futures have declined due to profit taking and concerns about inflation.

16 October 2023 16 October 2023

On Friday, October 13, 2023, Chicago Board of Trade (CBOT) wheat futures rose on export demand from China. At the end of the trading day, December quotations of soft winter wheat on the Chicago Mercantile Exchange CBOT rose to $213.02 per ton, December futures of hard winter wheat KCBT in Kansas City fell to $245.81 per ton, December futures of hard spring wheat MGEX fell to $265, 29 per ton.

US soybean futures fell on Friday due to profit-taking after hitting two-week highs in the previous session, as well as worsening consumer sentiment and inflation concerns hanging over the market.

Corn futures trailed soybeans, but wheat rose after the US Department of Agriculture (USDA) reported better-than-expected weekly export sales and confirmed large sales to China.

Lower U.S. corn and soybean yields in the USDA's monthly report on Thursday lifted some grain and soybean contracts to multi-week highs, leaving the market vulnerable to a pullback in profit-taking ahead of the weekend.

News on soybean exports was mixed as the USDA announced another daily "flash" sale and reported stronger-than-expected weekly sales last week, but China customs data showed a sharp drop in soybean imports.

Chicago Mercantile Exchange November soybean futures fell 9-3/4 cents to $12.80-1/4 a bushel after hitting technical resistance at the previous session's high and key level of $13. However, the benchmark contract gained 1.1% for the week, its first weekly gain in seven weeks. December corn futures lost 2-3/4 cents to settle at $4.93-1/4 a bushel. But over the week the contract added 0.3%.

December CBOT wheat hit a 2-1/2-week high and rose 8-1/4 cents to $5.79-3/4 a bushel. The benchmark contract posted its second weekly gain in a row, up 2%.

Wheat rose after a USDA report showed the highest weekly export sales of the year and the agency confirmed a large sale of soft red winter wheat to China.

At the Chicago Board of Trade (CBOT) on Friday, contracts for delivery in November and December:

wheat (DCBR 2023) - 213.02 dollars/t (20,660 rubles/t) - plus 1.78%;
corn (DCBR 2023) - 194.19 dollars/t (18,840 rubles/t) - minus 0.56%;
soybeans (NBR 2023) - 470.40 USD/t (45,630 RUB/t) - minus 0.76%;
rice November (November 2023) - 781.72 dollars/t (75820 rub./t) - plus 0.16%;
rapeseed (ICE, Nov. 2023) - 720.00 cad/t (51,340 rub./t) - plus 1.04%.

The French grain market rose on Friday. At the end of the trading day, December quotes for milling wheat on the Paris MATIF exchange rose to €237.25 per ton (in dollar equivalent - up to $249.73). November corn quotes are up to €200.25 per ton (in dollar equivalent they dropped to $210.78).

On the Paris Exchange (MATIF) on Friday, quotes for November and December contracts at the closing of trading were:

flour milling wheat (DCBR 2023) - 249.73 dollars/t (24,220 rubles/t) - plus 0.84%;
corn (NBR 2023) - 210.78 dollars/t (20,440 rubles/t) - minus 0.61%;
sunflower (Oct. on the SAFEX exchange - 8606.00 zar./t (44340 rub./t) minus 0.51%;
sunflower oil (Oct. Rotterdam, bulk FOB) - $910.00/t (RUB 88,270/t) minus 1.09%.

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