Chicago wheat gains on Black Sea concerns; soybeans rise, corn flat

BEIJING: Chicago wheat futures rose slightly on Monday as concerns over Black Sea export tensions persisted, despite positive signals from talks between US President Donald Trump and Ukrainian President Volodymyr Zelenskiy on ending the war.

The most-active wheat contract on the Chicago Board of Trade (CBOT) rose 0.1% to $5.19-1/2 a bushel by 0422 GMT.

Trump said on Sunday that he and Zelenskiy were close to an agreement to end the war in Ukraine.

However, he acknowledged that the fate of the disputed Donbas region remained unresolved, while Zelenskiy said on Monday that US and Ukrainian teams would meet next week to finalise issues.

Despite the positive signals, Russia and Ukraine continued striking each other’s energy infrastructure over the weekend.

“These strikes indicate that the Black Sea region remains at risk from ongoing tensions, supporting wheat prices,” said Johnny Xiang, founder of Beijing-based AgRadar Consulting.

Ukraine is one of the world’s biggest exporters of wheat and corn.

Trading remained light after the Christmas holiday, and as year-end approached, many traders booked profits and exited the market.

A lack of fresh news in corn and soybeans has also given market players little incentive to trade.

CBOT soybeans added 0.26% to $10.75-1/4 a bushel, however, abundant global supplies, particularly a bumper harvest from top exporter Brazil, limited price gains.

“The weather in South America looks favorable, so production is unlikely to suffer major losses.

This will limit the upside potential for international soybean prices,“ said Xiang.

“The market is still in holiday mode, and clarity may only come after the supply and demand report,” he added. Corn traded flat at $4.50 a bushel, supported by strong US demand.