PARIS/SINGAPORE: Chicago wheat futures were little changed on Tuesday, trading close to a six-week high as war risks to Black Sea grain supply remained in focus.
Corn was also near flat after rallying with wheat a day earlier. Soybeans ticked down as soymeal eased following Monday’s near nine-year peak spurred by drought in Argentina.
Price movements were limited as futures faced chart resistance and investors braced for U.S. inflation data on Tuesday as a latest gauge of interest rate policy.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 0.06% at $7.91-1/2 a bushel by 1133 GMT.
It earlier set its highest since Dec. 30 at $7.96-1/2, surpassing a previous six-week top from Monday but holding below the $8 psychological threshold.
In Europe, March milling wheat on Euronext earlier set a fresh one-month high at 300.25 euros as it tested the 300 euro threshold.
“Market chatter continues to focus on, in one form or another, worries about the near-term reliability of Black Sea supply,” said Tobin Gorey, director of agricultural strategy at the Commonwealth Bank of Australia.
In latest Russian criticism of a wartime agreement allowing Ukrainian grain exports through the Black Sea, Moscow said on Monday it would be “inappropriate” to extend the deal unless sanctions affecting its agricultural exports were lifted.
News that military officials in Ukraine issued a warning on Tuesday of a high risk of naval mines drifting around the port of Odesa kept attention on potential disruption to grain trade as fighting in Ukraine intensifies.
CBOT corn was up 0.1% at $6.85-3/4 a bushel, after earlier equalling Monday’s near two-week high.
Soybeans were down 0.4% at $15.37-1/4 a bushel, pressured by a fallback in soymeal.
The soy market is assessing the possible benefit to parched crops of light showers in Argentina’s main farm belt.
Traders are also monitoring wet weather in Brazil which has slowed early soybean harvesting and planting of the country’s second corn crop.