SINGAPORE: Chicago wheat futures slid on Wednesday, giving up much of the previous session’s gains and trading near a 17-month low reached earlier this week, on expectations for a Black Sea grain corridor deal between Russia and Ukraine.
Soybeans eased, while corn firmed.
“The wheat market is pricing in that the Black Sea grain deal will be renewed,” said one Singapore-based trader. “Prices are under pressure with ample supplies expected from Russia and Ukraine.”
The most-active wheat contract on the Chicago Board of Trade (CBOT) fell 0.4% to $6.95-1/4 a bushel, as of 0345 GMT, soybeans lost 0.2% to $15.13-1/4 a bushel and corn rose 0.3% to $6.36-1/4 a bushel.
The wheat market is under pressure from Russian export competition and expectations that a wartime grain corridor from Ukraine will be extended beyond this month.
United Nations Secretary-General Antonio Guterres will meet Ukrainian President Volodymyr Zelenskiy in Kyiv on Wednesday to discuss extending a deal with Moscow that allows the Black Sea export of Ukraine grains amid Russia’s war in the country.
Weather forecasts projecting showers in some U.S. wheat belts have also curbed prices.
But weekly U.S. Department of Agriculture (USDA) data on Monday showing a decline in winter wheat conditions in the top U.S. producing state, Kansas, kept the focus on persistent drought in part of the U.S. Plains.
Soybeans remained underpinned by drought in Argentina, where heat is seen limiting any benefit to crops from light showers.
Traders are awaiting the USDA’s March supply and demand report on Wednesday for an update on Brazilian crops, which may help offset losses in Argentina.
Commodity funds were net sellers of CBOT soybean, soyoil, soymeal and corn futures contracts on Tuesday, traders said. Funds were net buyers of CBOT wheat futures, traders said.