COMMODITIES(B-Trams):
SINGAPORE: Chicago wheat futures gained more ground on Monday, supported by a weaker US dollar, while market’s focus on talks this week to renew a Black Sea deal that will allow Ukraine to continue shipping grains, Chicago wheat futures gained more ground on Monday, supported by a weaker US dollar.
Corn and soybeans gained ground as a result of a severe drought that will have an effect on production in Argentina, a key supplier. One Singapore-based trader stated, “The market is anticipating a decision on the Black Sea grain deal this week.”
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“Rapid reductions in Argentina’s production forecasts are supporting prices for soybeans and corn.” As of 0313 GMT, the most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.5 percent at $6.82-1/2 a bushel, soybeans were up 0.5 percent at $15.13-3/4 a bushel, and corn was up 0.1 percent at $6.17-3/4 a bushel.
On Monday, investors hoped that the Federal Reserve would adopt a more restrained monetary policy as authorities intervened to contain the fallout from Silicon Valley Bank’s sudden collapse.
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The greenback-priced commodity becomes less expensive for buyers holding other currencies when the dollar weakens. The Black Sea grain deal renewal talks are the focus of the market.
This week in Geneva, senior Russian officials and a high-ranking UN trade official will discuss extending the agreement. On the other hand, Russia’s foreign ministry stated on Sunday that representatives from Russia had not yet participated in negotiations to extend the Black Sea grain deal.
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A historic drought that is destroying Argentina’s crops is escalating the country’s economic crisis, crushing farmers across the Pampas, heightening fears of default, and putting at risk goals agreed upon with the International Monetary Fund (IMF)
The country in South America, which is the third-largest exporter of processed corn and processed soybeans in the world, is currently experiencing its worst drought in more than 60 years. As a result, forecasts for the harvest of corn and soybeans have been repeatedly slashed.
According to regulatory data released on Friday, large speculators reduced their net long position in CBOT corn futures in the week ending February 21.
Non-commercial traders, which include hedge funds, increased their net short position in CBOT wheat and their net long position in soybeans, according to the Commodity Futures Trading Commission’s weekly commitments of traders report.
