Chicago soybeans set for weekly gain on Chinese demand outlook

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SINGAPORE — Chicago soybean futures rose slightly on Friday as prices were on track to end the week on a positive note as expectations of strong Chinese demand supported the market.

Wheat fell, but the market is poised for its first weekly gain since early October on concerns over Black Sea supplies and excessive rains damaging the Australian crop.

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* The most active soybean contract on the Chicago Board of Trade (CBOT) rose half a cent to $14.38-3/4 a bushel, at 0049 GMT, and the market gained almost 3% this week.

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* Wheat has climbed 1.5% so far this week after four weekly losses, while corn is expected to end the week flat.

* The soybean market was supported by expectations of strong demand from the main importer, China.

* However, the U.S. Department of Agriculture (USDA) said U.S. soybean export sales in the week ending Oct. 27 totaled 830,200 tons, which is on the low end of a range of business expectations.

* Maize export sales at 372,200 tonnes were in line with expectations.

* Traders were also digesting higher private harvest estimates. On Wednesday evening, commodity broker StoneX raised its estimate for the average U.S. corn yield to 174.5 bushels per acre (bpa), from 173.9 last month.

* On Thursday, private analyst firm IHS Markit Agribusiness, part of S&P Global Commodity Insights, raised its estimate for U.S. corn yield to 172.9 bpa from 171.2 a month ago. The USDA is expected to release updated US and global crop estimates on Nov. 9.

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* Uncertainty over grain exports from the war-torn Black Sea region and unfavorable weather conditions in Australia supported wheat.

* Ukraine has exported 10 million tonnes of grain and other foodstuffs since a UN-brokered deal in July restarted war-shattered shipments from Russia, the UN chief said Antonio Guterres, as he pushed Russia and Ukraine to extend the pact.

* Flooding and excessive rain in key parts of Australia’s wheat-growing areas caused extensive damage to what was expected to be a record high-quality crop just weeks ago, heightening concerns over the global food supply.

* While Australia is still on track for a third bumper harvest year, around half of the crop grown on its eastern grain belt – known for its premium durum wheat – is likely to be cut to the last animal feed, although the extent of the damage will be known after the waters recede, traders, analysts and farmers said.

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* Global stocks fell as U.S. Treasury yields rose on Thursday as investors weighed hawkish comments from Federal Reserve Chairman Jerome Powell on the prospect of further interest rate hikes aimed at reining in the inflation.

DATA/EVENTS (GMT) 0030 Japan JibunBK Comp Op Final SA Oct 0030 Japan JibunBK SVC PMI Final SA Oct 0030 Australia Q3 Retail Sales 0700 Germany Industrial Orders MM Sept 0700 Germany Manufacturing O/P Cur Prices SA Sept 0700 Germany Consumer Goods SA Sept 0850 France S&P Global Serv, Comp PMI Oct 0855 Germany S&P Global Services PMI Oct 0855 Germany S&P Global Comp Final PMI Oct 0900 EU S&P Global Serv, Comp Final PMI Oct 1230 US Non-Farm Payrolls Oct 1230 US Unemployment Rate Oct (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)



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