CHICAGO: US corn and wheat futures fell on Wednesday on reports that Russia was ready to provide humanitarian corridors for food shipments out of Ukraine, traders said.
Soybeans also were weaker, led lower by soymeal on expectations that China is set to approve imports of soymeal from Brazil next month. Chicago Board of Trade wheat futures were on track for their fifth loss in the last six sessions, a period during which the most-active contract has shed nearly 12%, while corn sank to it lowest since April 8.
“The food-based commodities are under pressure again this morning amid talk that Russia may allow grain to flow out of Ukrainian ports once again,” Arlan Suderman, chief commodities economist at StoneX, said in a note to clients.
Russia is ready to set up a humanitarian corridor for vessels carrying food to leave Ukraine in return for the lifting of some sanctions, the Interfax news agency cited Russian Deputy Foreign Minister Andrei Rudenko.
Ukraine’s Black Sea ports have been blocked since Russia sent thousands of troops into Ukraine on Feb. 24 and more than 20 million tonnes of grain are stuck in silos in the country.
At 11:05 a.m. CDT (1605 GMT), Chicago Board of Trade July soft red winter wheat futures were down 30 cents at $11.24-3/4 a bushel.
CBOT July corn was 7-1/2 cents lower at $7.64-1/4 a bushel while July soybeans were down 22 cents at $16.71 a bushel.
China’s expected move on soymeal and soy protein imports from Brazil follows its decision to allow imports of Brazilian corn. The decisions to allow new supply sources stems from Russia’s invasion of Ukraine that has disrupted crop shipments from the Black Sea and shifted global trading, with importers and food companies scrambling to find other sources to meet their needs.
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