Chicago wheat futures declined on Tuesday after reaching a three-month high the previous session, but the market was kept in check by worries over Black Sea supplies. For the third session in a row, corn and soybean prices increased.
Agricultural commodities analyst in Sydney: “Russia-Ukraine war escalation is generating uncertainties about wheat supplies, which is supporting prices.” “But we believe that Russia will pursue exports vigorously because it has a large crop to sell.”
As of 0247 GMT, the most active wheat contract on the Chicago Board of Trade (CBOT) was down 0.8% at $9.31 per bushel after reaching its highest level since June 29 on Monday at $9.49-3/4.
Soybeans increased by 0.3% to $13.78 a bushel while corn increased by 0.1% to $6.99.
Worries concerning wheat supply from the Black Sea region have been raised as a result of the intensifying conflict between Russia and Ukraine.
After Russia launched its largest aircraft strikes on towns since the start of the war, forcing people to escape to bomb shelters and compelling Kyiv to halt electrical supplies to Europe, Ukraine vowed to bolster its armed forces.
As the US crop gets farther along, attention on the soybean market is shifting to South America. According to agribusiness consultancy Agrural on Monday, Brazilian farmers have planted an estimated 9.6% of the expected soybean acreage, which is less than the 10.1% level from last year since unpredictable weather is interfering with work in some places.
Investors are positioning themselves ahead of the US Department of Agriculture’s (USDA) Wednesday crop production and monthly world agricultural supply and demand estimates announcements.
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According to traders, markets are concerned that, as in previous years, the USDA may increase soybean yield or acres in the report.
On Monday, dealers reported that commodity funds were net buyers of CBOT maize, soybean, wheat, and soy meal futures contracts.
In soy oil futures, they were net sellers.
