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SINGAPORE — Chicago wheat futures gained extra floor on Monday, underpinned by a weaker U.S. greenback, with the market’s give attention to talks this week to resume a Black Sea deal that can permit Ukraine to proceed delivery grains.
Soybeans and corn rose on assist from a extreme drought chopping output in key provider Argentina.
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FUNDAMENTALS
* Essentially the most-active wheat contract on the Chicago Board of Commerce (CBOT) was up 0.4% at $6.81-3/4 a bushel, as of 0106 GMT, soybeans gained 0.3% at $15.11-3/4 a bushel and corn rose 0.1% to $6.18 a bushel.
Commercial 2
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* The greenback weakened on Friday after U.S. labor information for February confirmed slower wage development, suggesting an easing of inflation pressures could hold the Federal Reserve’s tempo of rate of interest hikes modest and thereby cut back the dollar’s attraction.
* A weaker greenback makes the greenback-priced commodities cheaper for consumers holding different currencies.
* The market’s consideration is on talks to resume the Black Sea grain deal.
* A prime U.N. commerce official will meet senior Russian officers in Geneva this week to debate extending the deal.
* Nevertheless, Russia’s international ministry mentioned on Sunday that Russian representatives had not but taken half in negotiations on extending the Black Sea grain deal.
* A historic drought ravaging Argentina’s crops is deepening the nation’s financial disaster, crushing farmers throughout the Pampas, heightening default fears and placing in danger targets agreed with the Worldwide Financial Fund (IMF).
Commercial 3
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* The South American nation, the world’s prime exporter of processed soybeans and No. 3 for corn, is within the grip of it worst drought in over 60 years, which has led to repeated sharp cuts to soybean and corn harvest forecasts.
* Giant speculators minimize their web lengthy place in CBOT corn futures within the week to Feb. 21, regulatory information launched on Friday confirmed.
* The Commodity Futures Buying and selling Fee’s weekly commitments of merchants report additionally confirmed that non-commercial merchants, a class that features hedge funds, elevated their web brief place in CBOT wheat and raised their web lengthy place in soybeans.
MARKET NEWS
* U.S. inventory futures rallied in Asian commerce on Monday as authorities introduced plans to restrict the fallout from the collapse of Silicon Valley Financial institution (SVB), whereas buyers wagered future hikes in U.S charges would now be much less aggressive.
DATA/EVENTS (GMT) 0700 UK Claimant Depend Unem Chng Feb 0700 UK ILO Unemployment Price Jan 0700 UK HMRC Payrolls Change Feb Euro group finance ministers meet in Brussels (Reporting by Naveen Thukral; Enhancing by Sherry Jacob-Phillips)
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