GRAINS-Wheat drops as Russian production climbs

Credit: REUTERS/AMIRA KARAOUD

By Christopher Walljasper

CHICAGO, Sept 19 (Reuters) - Chicago wheat fell on Monday on an expected increase in Russia's crop that will compete with U.S. exports, already hampered by a strong U.S. dollar, traders said.

Soybeans were underpinned by Chinese export demand, while corn eased slightly on broader economic uncertainty.

Chicago Board of Trade most active wheat Wv1 fell 31-1/4 cents to $8.28-1/2 a bushel by 11:06 a.m. (1606 GMT).

Soybeans Sv1 added 8-1/2 cents to $14.57 a bushel, while corn Cv1 eased 3 cents to $6.74-1/4 a bushel.

Russian consultancy IKAR raised its forecast of Russia's 2022 wheat crop by 2 million tonnes, noting the world's largest wheat exporter will have 47.5 million tonnes available for shipment in the 2022/2023 marketing year.

"we’re seeing bigger and bigger production out of Russia," said Ed Duggan, senior risk management specialist at Top Third Ag Marketing. "What’s going to make our commodities attractive on a world market? Not with a high dollar."

Equities and crude oil fell, while the dollar firmed ahead of central bank meetings in the United States and elsewhere which could see borrowing costs rise globally.

Continued Ukrainian grain export shipments into world markets also weighed.

Some 165 ships with 3.7 million tonnes of agricultural products have left Ukraine in a safe shipping channel. Another ship chartered by the United Nations World Food Programme left Ukraine with around 30,000 tonnes of wheat for Ethiopia.

Soybeans were spurred higher as U.S. exporters sold 136,000 tonnes of the oilseed to China, the U.S. Department of Agriculture said.

"The beans are taking off on new demand today," said Jack Scoville, market analyst at The Price Futures Group. "We’re getting closer to harvest, so that will weigh on things more and more."

U.S. exporters readied 518,743 tonnes of soybeans for shipment the week ended Sept. 15, up 51.81% from the week prior, the USDA said, and in line with analyst expectations.

Corn inspections of 549,354 tonnes were up 15.8% versus a week earlier, while wheat inspections of 790,145 tonnes were up 4.27%, both within analyst predictions.

(Reporting by Christopher Walljasper in Chicago; additional reporting by Michael Hogan in Hamburg; editing by Jonathan Oatis)

((Christopher.Walljasper@thomsonreuters.com; 1 630 269 3072; Reuters Messaging: christopher.walljasper.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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