U.S. wheat futures fall after rally; soy, corn also weak
CHICAGO — U.S. wheat futures fell on Thursday, settling back from a sharp rally a day earlier as investors weighed Russian criticism of a Ukrainian grain export deal against prospects of a slowing global economy, traders said.
Corn futures also were weaker despite growing concerns about a disappointing U.S. harvest after dry weather in key growing areas sapped crops of their yield potential.
Soybeans eased to their lowest since Aug. 4, but some bargain buyers stepped in to the market to keep the losses in check.
“I think today is a technical pullback,” said Bill Biedermann, a partner at AgMarket.Net. “We are losing speculative interest in all commodities.”
At 10:32 a.m. CDT (1532 GMT), Chicago Board of Trade soft red winter wheat for December delivery was down 16-3/4 cents at $8.27-1/2 a bushel.
Wheat markets jumped on Wednesday after President Vladimir Putin said Russia and the developing world had been “cheated” by a U.N.-brokered Ukrainian grain export deal, vowing to look to revise its terms to limit the countries that can receive shipments.
Wheat futures had been curbed in recent weeks by an increasing flow of Ukrainian shipments through the Black Sea corridor, along with falling prices for Ukrainian and Russian supplies.
Recession fears, as central banks raise interest rates to tackle inflation, remained a brake on grain prices by threatening to curb demand.
“Grain markets got a boost from Putin’s Ukraine export corridor threats yesterday, but most other agriculture markets are pinned lower by the bearish macro mood,” Peak Trading Research said in a note.
CBOT December corn was down 8 cents at $6.63 a bushel while CBOT November soybeans shed 5 cents to $13.78-1/2 a bushel. Soybeans have fallen in six of the previous seven sessions. (Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Rashmi Aich and Mark Potter)