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Thursday, December 7, 2023

Wheat drops from 3-month high, Russia-Ukraine supply woes limit decline

SINGAPORE: Chicago wheat futures slid on Tuesday, retreating from a three-month high scaled in the previous session, although concerns over Black Sea supplies provided a floor under the market. Corn and soybeans rose for a third consecutive session.

“Russia-Ukraine war escalation is raising doubts over wheat supplies, which is supporting prices,” said one Sydney-based agricultural commodities analyst. “But we think, Russia has a big crop to sell and it will go hard on exports.”

The Chicago Board of Trade (CBOT) most-active wheat contract lost 0.8% to $9.31 a bushel, as of 0247 GMT, after climbing to its highest since June 29 at $9.49-3/4 a bushel on Monday.

Corn added 0.1% to $6.99 a bushel and soybeans gained 0.3% to $13.78 a bushel.

The escalating war between Russia and Ukraine has raised worries about wheat supplies from the Black Sea region.

Ukraine vowed to strengthen its armed forces after Russia launched its biggest aerial assaults on cities since the beginning of the war, forcing thousands to flee to bomb shelters and prompting Kyiv to halt electricity exports to Europe.

The focus in the soybean market is shifting to South America as the US harvest progresses. Brazilian farmers have sowed an estimated 9.6% of the estimated soybean area, below last year’s 10.1% level as erratic weather is disrupting the work in some areas, according to agribusiness consultancy Agrural on Monday.

Investors are taking positions ahead of the US Department of Agriculture’s (USDA) monthly World Agricultural Supply and Demand Estimates and Crop Production reports due on Wednesday.

Paris wheat hits 3-month high

Traders say markets are worried that the USDA may raise soybean yield or acres in the report, as they have in past years.

Commodity funds were net buyers of CBOT corn, soybean, wheat and soymeal futures contracts on Monday, traders said.

They were net sellers in soyoil futures.

Wheat drops from 3-month high, Russia-Ukraine supply woes limit decline

Source: Brecorder

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