Wheat falls for second session on Black Sea deal extension hopes
SINGAPORE — Chicago wheat lost more ground on Thursday, as global supply concerns ease with the Black Sea deal likely to be extended for Ukrainian seaborne grain exports.
Soybeans and corn also fell.
“Expectations that a grain export corridor deal from Ukraine will be maintained helped to pressure the market,” Hightower said in a report.
“However, the fact that the market was able to hold above last week’s low would suggest that the outlook for continued export flow out of Ukraine may have already been priced into the market.”
The most-active wheat contract on the Chicago Board of Trade (CBOT) lost 0.5% to $8.13-3/4 a bushel, as of 0246 GMT, soybeans gave up 0.2% to $14.26 a bushel and corn fell 0.3% to $6.63-1/4 a bushel.
Wheat and corn fell as traders monitored developments in the Black Sea region.
A United Nations source on Wednesday said they have reasons to be “cautiously optimistic” on the renewal of a Black Sea grains export agreement, which is set to roll over on Saturday unless there are objections.
The U.N.-backed agreement on July 22 allowed grain shipments to resume from certain Ukrainian ports on the Black Sea, leading to some 10 million tonnes in shipments and helping to reduce international prices.
Ukraine used to export by sea 5 million to 6 million tonnes of agricultural products monthly before the Russian invasion in February blocked Ukrainian ports.
Meanwhile, Poland’s President Andrzej Duda said the missile that hit Poland killing two people was probably a Ukrainian air defense missile and there was no evidence to suggest the incident was an intentional attack by Russia.
The announcement, which followed similar suggestions by the United States, was likely to ease global concern that the war in Ukraine could spill across the border.
The decline in corn futures was limited by strong demand. The U.S. Department of Agriculture confirmed private sales of 1,866,900 tonnes of U.S. corn to Mexico.
Egypt’s state grains buyer, the General Authority for Supply Commodities, is believed to have bought 300,000 tonnes of Russian wheat via private talks, traders said on Wednesday.
Commodity funds were net sellers of CBOT soybean, soyoil, wheat, soymeal and corn futures contracts on Wednesday, traders said. (Reporting by Naveen Thukral; Editing by Rashmi Aich and Sherry Jacob-Phillips)
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