Wheat eases after rally, Russia-Ukraine war limits downside

BEIJING: Chicago wheat ticked lower on Tuesday, falling for the first time in four sessions, although losses were limited by concerns that an escalation in the Russia–Ukraine war could disrupt supplies.

Soybeans ticked higher, while corn was flat.

“We have seen some uptick in wheat prices due to the Black Sea situation,” said one Singapore-based grains trader, referring to recent gains.

“But there are no major supply issues despite the Russia–Ukraine war. In fact, bumper harvests in the Southern Hemisphere, particularly in Australia and Argentina, are adding to global supply pressure.”

The most-active wheat contract on the Chicago Board of Trade (CBOT) fell 0.1% to $5.15 a bushel by 0314 GMT.

Soybeans added 0.1% to $10.66-1/4 a bushel, while corn was flat at $4.47 a bushel.

Reports of more Russian strikes on Ukrainian port infrastructure rekindled concerns about war risks to Black Sea grain trade, encouraging investors to cover short positions after an eight-week low last week.

Russian forces hit port and energy infrastructure in Ukraine’s Odesa region, sparking a fire that burned 30 containers of flour and vegetable oil at the port of Pivdennyi, a senior Ukrainian official said on Monday.

Russia has increased attacks on the Odesa region on the Black Sea coast in recent weeks, disrupting Ukraine’s grain export logistics.

Expectations of a record soybean harvest in Brazil are keeping a lid on prices.

Brazil’s 2025/26 soybean production is expected to reach 180.4 million metric tons, agribusiness consultancy AgRural said on Monday, raising its forecast from the 178.5 million tons estimated in November.

Russia cut wheat area amid falling profits.

The country’s overall wheat area is expected to fall to 26.3 million hectares from 26.9 million hectares, while the average wheat yield will edge down to 3.2 tons per hectare from 3.3 tons, the Sovecon consultancy said on Monday.