SINGAPORE: Chicago wheat lost more ground on Thursday after Russia said it would resume participation in a Black Sea grain export deal, reversing its decision and easing concerns over food supplies. Soybeans slid from a six-week high scaled in the previous session and corn also fell.
“Russia resuming participation in the Black Sea grain corridor prompted the fall,” said Tobin Gorey, director of agricultural strategy at the Commonwealth Bank of Australia.
“We suspect this will not be the final word on the issue but that is good news while it lasts.” The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 0.8% at $8.39 a bushel, as of 0330, after dropping more than 6% in the previous session.
Soybeans gave up 0.5% to $14.46-3/4 a bushel, having climbed to their highest since Sept. 22 on Wednesday at $14.58 a bushel and corn lost 0.4% to $6.84-1/2 a bushel.
Wheat prices came under pressure on Wednesday after Russia’s decision reversal on the Black Sea export corridor.
US wheat slumps 6% after Russia says it will resume Black Sea grain deal
Moscow said it would renew its participation in the UN-brokered corridor just four days after suspending its role in the deal saying it could not guarantee the safety of civilian ships crossing the Black Sea because of a drone attack on its fleet there.
Corn took cues from wheat, with additional pressure noted from news that China’s customs agency updated its list of approved Brazilian corn exporters, potentially clearing the way for exports of Brazilian corn to China.
Soybean prices have firmed on the back of strength in global vegetable oil markets as well as optimism about soybean export demand from China.
Brazilian authorities said on Wednesday they are making headway in their efforts to clear blockades set up across the country by truckers to protest President Jair Bolsonaro’s narrow loss to leftist Luiz Inacio Lula da Silva in an Oct. 30 runoff election.
The protests has disrupted fuel distribution, industrial activity, food deliveries to supermarkets and shipments of grains to ports.
Commodity funds were net sellers of CBOT wheat, corn and soymeal futures contracts on Wednesday and net buyers of soyoil and soybean futures, traders said.