Chicago futures company on global supply, US weather concerns

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U.S. grain futures rose on Tuesday at the start of Asian trade, with corn trading near a five-week high and wheat hovering near a two-week high, buoyed by concerns sparked by the Russian-Ukrainian conflict which continues to disrupt Black Sea shipping.

FUNDAMENTALS

* The most active corn contract on the Chicago Board of Trade (CBOT) rose 0.5% to $7.68 a bushel, at 0111 GMT, near a five-week high in the previous session.

* CBOT soybeans climbed 0.4% to $16.61-1/2 a bushel.

* CBOT wheat rose 0.2% to $10.91-1/2 a bushel, near Monday’s two-week high of $10.96-7/8.

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* The U.S. Department of Agriculture assessed 32% of U.S. winter wheat on Monday as in good to excellent condition, up two percentage points from a week ago and above average analysts’ expectations.

* Still, the latest USDA ratings for the winter wheat crop are among the worst on record for this time of year as drought persists in the Plains wheat belt.

* Bumper crops and overflowing grain silos will help India meet the wheat import needs of major global buyers, a senior government official has said.

* The USDA has confirmed private sales of 680,000 tonnes of US corn to China for shipment in the 2021/22 marketing year and 340,000 tonnes for shipment in 2022/23.

* Corn, being the main feedstock in the United States for ethanol, sometimes follows crude oil.

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* Oil futures rose on Tuesday as the potential for further sanctions on Russia’s energy sector weighed on sentiment, along with a warning from OPEC that it would be impossible to increase production enough to offset loss of supply.

MARKET NEWS

* Global stock markets fell on Monday, dragged lower by tech stocks in Europe and on Wall Street, as US Treasury yields jumped on inflation data that could prompt the Federal Reserve to tighten policy enough to slow the rebound of the economy.

DATA/EVENTS (GMT)

0600 Germany HICP final March YY

0600 United Kingdom ILO Unemployment rate Feb.

0600 United Kingdom Applicant Account Unem Chng Mars

0900 Germany ZEW Current Conditions April

0900 Germany ZEW Economic Sentiment April

1230 US CPI YY/MM SA March (Reporting by Enrico Dela Cruz in Manila; Editing by Uttaresh.V)

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