Wheat near 3-month top on lower U.S. output, tight world supply
SINGAPORE, Oct 3 (Reuters) - Chicago wheat futures kicked off the last quarter of 2022 on a bullish note on Monday, with prices climbing 1% after a U.S. government report reduced its production estimate amid tightening world supplies.
Corn rose for a second consecutive session on forecasts of lower supplies in the United States and Europe, while soybeans rose after declining on Friday.
* The Chicago Board of Trade (CBOT) most-active wheat contract Wv1 was up 1% at $9.30-3/4, as of 0039 GMT, not far from Friday's three-month high of $9.46 a bushel.
* Corn Cv1 added 1.1% to $6.84-3/4 a bushel and soybeans Sv1 gained 0.5% to $13.71-1/2 a bushel.
* The 2022 U.S. wheat harvest was smaller than previously forecast, the U.S. Department of Agriculture (USDA) said in its annual Small Grain Summary report, cutting its crop assessment to 1.650 billion bushels.
* This compared with analysts' average estimate of 1.778 billion bushels in a Reuters poll, and 1.783 billion bushels in the USDA's August assessment.
* The world is heading toward the tightest grain inventories in years despite the resumption of exports from Ukraine, as the shipments are too few and harvests from other major crop producers are smaller than initially expected.
* Corn prices were underpinned by tighter-than-expected stocks, with the USDA pegging corn stocks at 1.377 billion bushels, down from trade expectations of 1.512 billion bushels.
* U.S. corn inventory estimates came as the European Commission cut its forecast for this year's maize harvest in the region to 55.5 million tonnes from 59.3 million in late August, joining other forecasters in projecting a 15-year low for the drought-hit crop.
* The 6.4% decrease marked the third sharp reduction in a row to the Commission's monthly forecast for corn harvest.
* Large speculators cut their net long position in CBOT corn futures in the week ended Sept. 27, regulatory data released on Friday showed.
* The Commodity Futures Trading Commission's weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, trimmed their net short position in CBOT wheat and cut their net long position in soybeans.
* Soybean slid on Friday after the USDA upgraded its stocks assessment to 273.76 million bushels, significantly higher than the average trade guess of 242 million bushels.
* Heightening Russia-Ukraine tensions provided additional support to wheat and corn futures.
* Russian President Vladimir Putin proclaimed the annexation of a swathe of Ukraine in a Kremlin ceremony on Friday after holding what Russia called referendums in occupied areas. Western governments and Kyiv said the votes breached international law and were coercive and non-representative.
* Wall Street and global stocks slumped further on Friday, with government bond yields and the dollar holding near recent peaks, as higher-than-expected inflation capped a nasty third quarter for world markets.
DATA/EVENTS (GMT, Sept) 0030 Japan
JibunBK Mfg PMI Final SA 0750 France S&P Global Mfg PMI 0755 Germany S&P Global/BME Mfg PMI 0800 EU
S&P Global Mfg Final PMI 0830 UK
S&P GLBL/CIPS Mfg PMI FNL 1345 US
S&P Global Mfg PMI Final 1400 US
ISM Manufacturing PMI British finance minister, Kwasi Kwarteng, speaks at the annual Conservative party conference in the aftermath of the pound plummeting following his mini-budget
Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips
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.