Wheat extends gains to second day, Omicron and supply outlook cap gains



CANBERRA, Dec 2 (Reuters) - U.S. wheat futures edged higher for a second consecutive session on Thursday, although concerns about the Omicron coronavirus variant and expectations of ample global supplies capped gains.

FUNDAMENTALS

* The most-active wheat futures on the Chicago Board Of Trade Wv1 were up 0.2% at $7.92 a bushel by 0238 GMT, after closing up 0.4% on Wednesday.

* The most-active soybean futures Sv1 were down 0.3% at $12.24-3/4 a bushel, after ending 0.9% higher on Wednesday.

* The most-active corn futures Cv1 were down 0.3% at $5.70-1/2 a bushel, having closed up 0.7% in the previous session.

* Wheat markets have soared in recent weeks as the possibility of more Russian export restrictions and the risk of rain damage to Australia's crop fanned fears of tight milling wheat supplies.

* However, global supply worries have eased in recent days on signs of a stabilizing U.S. crop, and Australia's chief commodity forecaster, ABARES, revising its official estimate for the 2021/22 crop to a record 34.4 million tonnes.

MARKET NEWS

* The safe-haven yen hovered near a seven-week high on Thursday while the rand and riskier currencies languished as the Omicron coronavirus variant established itself as the dominant strain in South Africa and continued to spread globally.

* Oil prices rose on Thursday, reversing the previous day's losses, on expectations OPEC+ may pause supply additions amid growing concern the spread of the Omicron coronavirus variant could weigh on the global economy and fuel demand.

* Asian shares edged higher in choppy trading on Thursday, helped by advances in Chinese real estate shares, though fears about the Omicron variant of the new coronavirus capped gains regionally.


Reporting by Colin Packham; Editing by Devika Syamnath

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.