GRAINS-Argentine crop woes support soybeans, wheat eases after rally

SINGAPORE, March 29 (Reuters) – Chicago soybean futures were little changed on Wednesday, holding near last session’s one-week high on concerns over lower production in drought-hit Argentina.

Wheat and corn fell in positioning ahead of Friday’s annual U.S. Department of Agriculture (USDA) planting intentions report.

FUNDAMENTALS

* The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 rose half a cent to $14.68-1/2 a bushel, as of 0010 GMT. Wheat Wv1 fell 0.4% to $6.97 a bushel and corn Cv1 quarter of a cent to $6.47 a bushel.

* Argentina’s Buenos Aires grains exchange maintained its 2022/2023 production forecasts for both soybean and corn on last week, but cautioned further cuts were possible with yields on the first batches of soy coming in below expectations.

* The exchange, which has been forced by a historic drought hitting the country to repeatedly sharply cut soybean and corn harvest forecasts, held its soybean estimate at 25 million tonnes and its corn outlook at 36 million tonnes.

* Agricultural markets are likely to seek direction from U.S. planting report due on Friday.

* Analysts polled by Reuters ahead of the report on average expect 2023 corn plantings at 90.880 million acres, wheat at 48.852 million acres and soybeans at 88.242 million acres.

* Ukraine’s grain exports for the 2022/23 season were down 17.7% to 36.9 million tonnes as of March 27 reflecting a smaller harvest and logistical difficulties caused by Russia’s invasion, agriculture ministry data showed.

* Russia has no plans to halt wheat exports but wants exporters to ensure high prices for farmers, sources told Reuters.

* The USDA reported another flash sale to China of 136,000 tonnes of U.S. corn.

* Commodity funds were net buyers of CBOT corn, soybean, wheat, soymeal and soyoil futures contracts on Tuesday, traders said. COMFUND/CBT

MARKET NEWS

* Wall Street’s major indexes closed lower on Tuesday while Treasury yields and gold advanced as investors worried that the U.S. Federal Reserve would keep interest rates higher for longer as fears of further banking sector failures faded. MKTS/GLOB

DATA/EVENTS (GMT)

No major data/events expected on Wednesday, March 29

(Reporting by Naveen Thukral; editing by Uttaresh Venkateshwaran)

((naveen.thukral@thomsonreuters.com; +65-6870-3829; Reuters Messaging: naveen.thukral.thomsonreuters.com@reuters.net))

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