CHICAGO: US wheat, corn and soybean futures fell on Monday as worries over coronavirus cases in China weighed on commodity markets while grain traders also adjusted positions ahead of key US crop reports due later this week.
Crude oil dropped sharply as China’s financial hub Shanghai launched a lockdown to contain surging COVID-19 cases. The risk of renewed economic disruption due to the pandemic added further uncertainty to markets that have been grappling with the Russia’s invasion of Ukraine.
“The broad sell-off in commodities continued into midday today, as fund managers react to massive shutdowns in China due to COVID, as well as to lingering hopes for peace talk success in Ukraine,” Arlan Suderman, StoneX chief commodities economist wrote in a note to clients.
Ukraine and Russia were preparing for the first face-to-face peace talks in more than two weeks, but a senior US official said Russian President Vladimir Putin did not appear ready to make compromises to end the war. Ukrainian officials also played down the chances of a major breakthrough at the talks, due to be held in Istanbul.
As of 12:48 p.m. CDT (1748 GMT), Chicago Board of Trade May wheat was down 42 cents at $10.60-1/4 per bushel after dipping to $10.47, its lowest since March 17. CBOT May soybeans were down 44-3/4 cents at $16.65-1/2 a bushel and May corn was down 9-1/2 cents at $7.44-1/2 a bushel.
CBOT wheat posted the biggest declines on a percentage basis, given signs that global importers have been able to find adequate wheat supplies despite disruptions stemming from Russia-Ukraine conflict.
—Reuters
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