Chicago wheat drops on Black Sea hopes
Chicago wheat prices fell 0.9% to $5.60 a bushel on Wednesday, driven by Russia’s temporary halt on attacks against Ukrainian energy facilities, despite not agreeing to a full ceasefire. Corn also dropped 0.2% due to expectations of higher U.S. planting, while soybeans rose by 0.2%. U.S. corn planting is projected to increase by 800,000 acres this year.
SINGAPORE: Chicago wheat slid on Wednesday as top grain exporter Russia agreed to stop attacking energy facilities temporarily in rival supplier Ukraine, even though it declined to endorse a full ceasefire.
Corn fell for a second session with pressure from expectations of higher planting in the United States this year, while soybeans ticked higher.
“There is some good news on the war front but it is sentiment driven rather than anything else,” said Ole Houe, director of advisory services, Ikon Commodities in Sydney.
“Getting supplies was never an issue from the Black sea, apart from the first two months of the war.” The most-active wheat contract on the Chicago Board of Trade (CBOT) gave up 0.9% to $5.60 a bushel, as of 0235 GMT and corn fell 0.2% to $4.57-3/4 a bushel. Soybeans were up 0.2% at $10.14-3/4 a bushel.
Russian President Vladimir Putin agreed on Tuesday to temporarily stop attacking Ukrainian energy facilities but declined to endorse a full 30-day ceasefire that US President Donald Trump hoped would be the first step toward a permanent peace deal.
For corn, S&P Global Commodity Insights projected on Tuesday that US farmers would plant 94.3 million acres of corn in 2025, up 800,000 acres from its previous forecast released on January 21 and up 3.7 million acres from 2024, an S&P Global spokesperson said.
The firm left its forecast of US 2025 soybean plantings unchanged from January at 83.3 million acres, down 3.8 million acres from a year ago.
The USDA on Monday reported higher-than-expected weekly export inspections for wheat, while corn and soybean volumes were within a range of trade estimates.
Financial markets operator CME Group said on Tuesday that it plans to launch cash-settled futures for European rapeseed oil next month, using an Argus Media index for Dutch prices.
Commodity funds were net sellers of CBOT corn, soybean, soymeal and wheat futures contracts on Tuesday, traders said. Funds were net buyers of soyoil futures.
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Source : Business Recorder
