CHICAGO: Chicago wheat fell on Friday but was on track to book a monthly gain, the first monthly rise in three months, on mounting concerns over Black Sea supplies due to attacks by both Russia and Ukraine. Technical trading drove wheat futures down and soybeans and corn followed, said Brian Splitt, partner at AgMarket.net.
Wheat prices jumped on Thursday on reports that Ukrainian drones had attacked the port of Taman in Russia, on the Kerch Strait linking the Black Sea and the Sea of Azov.
Shipowners, insurers and exporters may be increasingly reluctant to operate in the region, lifting freight costs and slowing the movement of grain, analysts said.
The end of the month is also causing liquidation, Splitt said.
Wheat fell 26-3/4 cents to USD6.36-3/4 a bushel by 11:51 a.m. CDT (1651 GMT) after it surged to USD6.86-1/2 a bushel in the previous session.
The corn contract on the Chicago Board of Trade eased 6-1/2 cents to USD4.62 a bushel and was on track for a monthly gain, snapping two consecutive monthly losses.
Its most-active soybean contract was down 6 cents at USD11.82-3/4 a bushel, falling for a third straight session as rain forecast in the US Midwest near the end of the week – vital for the soybean crop as it reaches the pod-setting phase of its development – weighed on the contract.
Splitt said that in corn and soybeans, market players are also looking forward to August’s US Department of Agriculture supply and demand report, when the agency traditionally provides updates on new crop yields.
The European Commission on Thursday cut its forecast for usable production of most grain and oilseeds in the European Union in 2026/27, including an 8percent output drop for soft wheat and a 14percent production drop for grain maize compared to 2025/26.
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