SINGAPORE: Chicago wheat slid for the first time in five sessions on Thursday, although losses were limited by concerns over supplies from Russia as global grain trader Cargill said it would no longer handle the country’s grain at its export terminal.
Soybeans ticked lower, while corn firmed. The most-active wheat contract on the Chicago Board of Trade (CBOT) fell 0.1% to $7.04 a bushel, as of 0426 GMT.
Soybeans lost half a cent to $14.76-3/4 a bushel and corn added quarter of a cent to $6.50-3/4 a bushel.
Cargill Inc said on Wednesday it would take a further step back from the Russian market by no longer handling the top wheat supplier’s grain at its export terminal from July, although its shipping unit will continue to carry grain from the country’s ports.
Russian exports could also be hampered if Moscow was to recommend a temporary halt in wheat and sunflower exports, as reported last week by Russian business newspaper Vedomosti.
Sources later told Reuters that Russia had no plans to halt wheat exports but wanted exporters to ensure prices paid to farmers were high enough to cover average production costs.
However, Ukraine’s grain exports have reached 5.1 million tonnes so far in March compared to 1.4 million tonnes in March 2022, the agriculture ministry data showed on Wednesday.
Brazil is poised to supply up to half of the soybeans that Argentina will import after the worst drought in 100 years devastated its fields and cut 2023 output nearly in half, analysts said.
CBOT wheat may fall into $6.79-3/4 to $6.85-3/4 range
Argentina, which is expected to reap round 25 million tonnes this season, may have to import up to 10 million tonnes of soy, more than double than in previous years, mainly from Paraguay and Brazil, they said.
Commodity funds were net buyers of CBOT corn, soybean, wheat and soyoil futures contracts on Wednesday, and net sellers of soymeal, traders said.
Source: Brecorder
