SINGAPORE– Chicago wheat futures increased for a third successive session on Tuesday with leading exporter Russia’s decision to impose tax on shipments underpinning the marketplace.

Soybeans and corn futures lost more ground in early Asian trade.

BASICS

The most-active wheat contract on the Chicago Board of Trade (CBOT) rose 0.9%to $6.81 -1/ 2 a bushel, as of 0125 GMT. Soybeans quit 0.2%to $1414 -1/ 2 a bushel and corn lost 0.5%to $5.28 -3/ 4 a bushel.

Russian wheat export rates increased sharply last week ahead of a new export tax enforced by among the world’s largest wheat exporters from mid-February, analysts stated on Monday.

Russia plans to impose a higher export tax on wheat from March 1, its economy minister stated on Friday, in another push to suppress an increase in domestic food rates activated by the COVID-19 crisis.

Ukraine’s grain exports have actually fallen 18.6%to 27.57 million tonnes this season, which runs from July 2020 to June 2021, economy ministry data showed on Monday.

Traders offered 12.75 million tonnes of wheat, 10.52 million tonnes of corn and 3.89 million tonnes of barley, the data revealed.

The U.S. Department of Agriculture’s minimized projections for U.S. corn and soybean materials on Tuesday triggered a rally that pushed soybeans to a 6-1/2- year high and corn to a 7-1/2- year high.

At the very same time strong need, led by China continues to drive costs higher.

China’s grains imports skyrocketed to record highs in 2020, customizeds information revealed on Monday, after tight domestic corn supplies pressed prices to multi-year peaks, driving demand for cheaper imports.

China, the world’s leading agricultural market, purchased a record 11.3 million tonnes of imported corn in 2015, including 2.25 million tonnes in December alone, according to General Administration of Customs data.

The month-to-month U.S. soybean crush increased to the second highest monthly level on record in December, capping the busiest year of processing ever for the industry, according to data launched by the National Oilseed Processors Association (NOPA) on Friday.

Large speculators raised their net long position in CBOT corn futures in the week to Jan. 12, regulatory information launched on Friday showed.

The Product Futures Trading Commission’s weekly commitments of traders report likewise revealed that noncommercial traders, a category that includes hedge funds, increased their net brief position in CBOT wheat and cut their net long position in soybeans.

MARKET NEWS

Asian share markets edged ahead on Tuesday as investors wagered China’s financial strength would help underpin growth in the area, even as pandemic lockdowns threatened to lengthen the road to healing in the West.

DATA/EVENTS (GMT) DATA/EVENTS (GMT) 0700 Germany HICP Final YY Dec 1000 Germany Zew Economic Sentiment Jan 1000 Germany Zew Current Conditions Jan (Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips)

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