SINGAPORE: Chicago wheat futures rose to a five-month top on Tuesday, gaining 2% as Russia’s attacks on Ukrainian ports and grain infrastructure sparked concerns about long-term global supplies and food security. Corn edged higher, while soybeans eased.
“The slowdown in Ukrainian exports has been priced into the market and buyers are now waiting to see what happens to Russian wheat exports,” said one Singapore-based grains trader.
“Any restrictions on movement of ships from Russia will be bullish for prices.”
The most-active wheat contract on the Chicago Board of Trade (CBOT) added 2% to $7.72-1/2 a bushel, as of 0338 GMT, after earlier touching $7.77-1/4, its strongest since Feb. 21.
Corn rose 0.1% to $5.69 a bushel, while soybeans lost 0.1% to $14.23-1/2 a bushel.
Russia destroyed Ukrainian grain warehouses on the Danube River in a drone attack on Monday, targeting a vital export route for Kyiv in an expanding air campaign that Moscow began last week after quitting the Black Sea grain deal.
UN Secretary-General Antonio Guterres has appealed for Russia to return to the Black Sea grain deal, warning of a devastating impact on “vulnerable countries struggling to feed their people.”
A top US Treasury official will highlight Washington’s efforts to facilitate Russian grain and fertilizer exports during a visit to Kenya and Somalia and stress that Moscow’s exit from the Black Sea grain deal will hurt African states, a spokesperson said.
The European Union’s crop monitoring service on Monday further reduced its crop yield forecasts for this year’s harvest in the bloc, including grains, oilseeds and sugar beet, citing dry and hot weather conditions.
Brazilian farmers had harvested 47% of the area planted for their second corn crop in the center-south region by the end of last Thursday, consultancy AgRural said, up 11 percentage points from the previous week.
After the CBOT close on Monday, the US Department of Agriculture (USDA) rated 57% of the US corn crop in “good to excellent” condition in its weekly crop progress report, steady with the previous week despite trade expectations for a slight improvement.
The USDA’s weekly ratings for soybeans and spring wheat declined, while analysts on average had expected no change.
Commodity funds were net buyers of CBOT corn, wheat, soybean, soyoil and soymeal futures contracts on Monday, traders said.
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