Wheat hits its highest level in 2 months due to data from Argentina

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December wheat in Chicago rose 0.8% to $334.64 a tonafter hitting maximum levels on the wheel since July 11.

Corn futures trailed wheat, while soybeans fell. corn for december rose 0.4% to $270.96, Y Soybeans for November fell 0.3% to US$535.35.

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Wheat futures have been relieved of pressure from a rising dollar, which tends to make US grains less competitive, disappointing weekly US export sales and rising global wheat production forecasts for 2022. /23 of the International Grains Council.

Traders seemed focused instead on fears of further disruption to the Black Sea grain trade that has been partially restored by a shipping corridor from Ukraine. President Vladimir Putin on Wednesday ordered a Russian mobilization to fight in Ukraine and hinted that he was prepared to use nuclear weapons.

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“It’s mainly about Russia and Ukraine, and what’s going on there.”said Jack Scoville, an analyst at Chicago’s Price Futures Group, of wheat’s strength.

Meanwhile, the Rosario Cereal Exchange of Argentina on Wednesday cut its production forecasts for the country’s wheat and corn crops, due to the impact of a prolonged drought, which supported prices.

Drought conditions are taking hold in the southern plains of the United States, where farmers are planting the 2023 winter wheat crop. A US Drought Monitor report showed “extreme drought” conditions in 53% of Kansas, the top US winter wheat producing state, down 42% the week before.

Trading in corn and soybean futures was subdued as traders awaited the results of the US harvest for both crops, which has just started in the Midwest crop belt.

Macroeconomic concerns hung over markets a day after the US central bank raised interest rates by 75 basis points for the third time, as expected.

Source: Ambito

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