GRAINS-Wheat and corn bounce off lows as demand stirs
PARIS/CANBERRA, Aug 7 (Reuters) - Chicago wheat rebounded on Thursday after hitting a five-year low, and corn recovered from contract lows as chart support and signs of new export demand countered the pressure of ample supplies.
Soybeans also edged up from a four-month trough.
The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was up 1.7% at $5.17 a bushel at 1306 GMT.
The benchmark had fallen to its lowest since August 2020 on Wednesday at $5.04 but held above the $5 floor.
CBOT December corn CZ25 rose 1.2% to $4.06 a bushel, moving back above the $4 threshold breached on Wednesday when it set a contract low of $3.96-3/4.
CBOT soybeans Sv1 added 0.5% to $9.89 a bushel to recover from their lowest level since April struck a day earlier.
Weekly U.S. export sales, reported by the U.S. Department of Agriculture on Thursday, showed wheat, corn and soybean volumes above market estimates.
That bolstered expectations that the recent price drop, coupled with weakness in the dollar, has made U.S. crops attractive for export.
It also shifted attention from abundant supply expected from Northern Hemisphere wheat harvests and autumn corn and soybean harvests in the United States.
Concerns over worsening prospects for Europe's corn crop also lent support.
Funds have expanded their net short position in CBOT wheat, corn and soybeans in the last couple of weeks, traders say, making the market prone to short-covering.
Concerns that U.S. President Donald Trump's aggressive trade policies will result in lower exports of U.S. grains and oilseeds have added to volatility.
China's buying of several cargoes of Argentinian soymeal "is clearly sending a message to the United States that it can find ways to fill its needs without U.S. soybeans," StoneX analyst Arlan Suderman wrote in a note.
Prices at 1306 GMT |
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| Last | Change | Pct Move |
CBOT wheat Wv1 | 517.00 | 8.50 | 1.67 |
CBOT corn Cv1 | 406.00 | 4.75 | 1.18 |
CBOT soy Sv1 | 989.00 | 4.50 | 0.46 |
Paris wheat BL2U5 | 197.25 | 3.50 | 1.81 |
Paris maize EMAc1 | 192.75 | 4.25 | 2.25 |
Paris rapeseed COMc1 | 470.50 | 0.75 | 0.16 |
WTI crude oil CLc1 | 64.77 | 0.42 | 0.65 |
Euro/dlr EUR= | 1.17 | 0.00 | -0.08 |
Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per metric ton | |||
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