HAMBURG: Chicago wheat and corn fell on Monday in a pullback after strong rises on Friday, as concerns eased about the future of Ukraine’s safe shipping channel for grain exports.
Chicago Board of Trade most-active wheat was down 0.9% at $7.78-3/4 a bushel at 1219 GMT. Corn fell 0.1% to 6.79-1/4 a bushel.
Soybeans rose 0.1% to $15.44 a bushel. Soymeal remained around its highest since 2014 hit on Friday, with March holding over the $500 level at $503.2 a ton.
Corn and wheat were pushed up on Friday as concern intensified that fighting in Ukraine could threaten the agreement for the shipping channel for Ukraine’s grain exports, which expires in March.
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“Wheat is seeing a pullback today on some selling pressure after the sharp rises on Friday because of worries about whether Ukraine’s safe shipping channel will be extended,” said Matt Ammermann, StoneX commodity risk manager.
“Fighting in Ukraine continues, but there was no substantial news about the shipping channel which could sustain the rise today.”
The stronger dollar is also negative for U.S. export prospects, he said.
“Corn is following wheat. There is also increased attention on upcoming U.S. corn plantings, with the price structure likely to support an extension of the U.S. planted area.”
Corn and soybean traders are monitoring rain forecast in drought-hit Argentina in coming days. Argentina’s soybean crop has been cut by dryness, but Brazil faces a bumper crop.
“Soybeans remain supported by concern about drought damage to Argentina’s crop, but expectations of a record harvest in Brazil have relieved concerns,” Ammermann said.
“With soymeal prices so high, breaking $500 a ton, Argentine soybean crushers are likely to start buying Brazilian soybeans.”
“Soybean supplies are available in Brazil, and I think it could be only a question of time before Argentine crushers buy more Brazilian beans to expand soymeal output.”
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