Chicago wheat falls as Turkey prepares Black Sea grain passage plan

BEIJING: Chicago wheat futures fell on Tuesday after Turkey said it was in contact with Russia and Ukraine about grain shipping via the Black Sea.

Soybeans gained, while corn dropped. The most-traded wheat contract on the Chicago Board of Trade (CBOT) fell 0.29% to $7.71-3/4 a bushel by 0320 GMT.

CBOT corn dropped 0.2% to $5.36-3/4 a bushel, while soybeans gained 0.8% to $12.98-1/2 a bushel.

Turkey said it had prepared a plan for the safe passage of grain via the Black Sea.

Turkey has repeatedly expressed willingness to revive a UN-brokered deal that got grain out of Ukraine during wartime.

Wheat futures hit a three-year high last week, supported by reports that Russia’s strikes could include targets in the city centre of Kyiv and critical infrastructure elsewhere in Ukraine.

The escalating tensions have cast uncertainty over global availability.

Attacks over recent months have halted almost all grain shipments through ports in the Black Sea and the Sea of Azov, which used to account for 70% of all Russian grain exports.

Traders remain on edge about the risks of a prolonged interruption to Russian and Ukrainian grain exports from the Black Sea region.

Russian grain exporters are rerouting shipments to the Baltic Sea after Ukrainian drone attacks in the Black Sea and the Sea of Azov, traders and analysts told Reuters.

Soybeans were supported by gains in oil prices and robust export demand.

The oilseed market often follows movements in crude oil as soybeans are commonly used as a feedstock for biofuel.

Oil prices rose on Tuesday as the resumption of fighting between the US and Iran in the Middle East renewed fears of supply disruptions from the world’s key crude-producing region.

Soybean export demand remained solid.

The US Department of Agriculture (USDA) reported that exporters sold 159,000 tons of US soybeans to unknown destinations.

The USDA lowered its condition rating for the country’s soybean crop in a weekly report on Monday.

The agency rated 58% of the crop in good-to-excellent condition, down from 60% a week earlier.

For corn, the USDA said 57% of the crop was in good-to-excellent condition, unchanged from a week earlier.