SINGAPORE: Chicago wheat futures edged lower on Tuesday, as traders locked in profits after a recent rally despite persistent supply concerns amid uncertainty over the future of the Black Sea grain deal.
Soybean and wheat futures were both headed for gains.
Wheat futures lost 0.2% to $6.86-1/2 a bushel, as of 0401 GMT, after reaching a two-month high in the previous session.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.9% at $13.54-1/2 a bushel, and corn gained 1.6% to $6.07 a bushel.
CBOT wheat to test resistance $7.16-3/4
The CBOT was closed on Monday for the Juneteenth holiday in the US Russia’s deputy foreign minister said on Monday that even if a deal allowing shipments of Ukrainian grain via the Black Sea ends, Russia’s agreement with the United Nations to ease its own exports will stay in force, Russian state news agency RIA reported on Monday.
Kremlin spokesman Dmitry Peskov said on Saturday there appeared to be “no chance” of extending the deal.
The trade needs a more definitive outlook on conditions post summer emergence but our observation for the upcoming USDA 7-day crop progress report is for crop ratings to decline for corn and soybeans after lackluster rain events over the weekend, said Terry Reilly, senior commodities analyst with Futures International.
The European Union’s crop monitoring service on Monday reduced nearly all its average yield forecasts for this year’s grain and oilseed crops in the bloc, citing adverse weather conditions.
Brazilian farmers have harvested through last Thursday 4.7% of the area planted for their second corn crop in the center-south region, agribusiness consultancy AgRural said on Monday, up 2.5 percentage points from the previous week.
Algeria’s state grains agency OAIC has bought milling wheat in an international tender which closed on Monday with supplies expected to be sourced largely from Russia, European traders said in initial assessments.
Commodity funds were net buyers of Chicago Board of Trade soybean, corn, soymeal, wheat and soyoil futures contracts on Friday, traders said.
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