IKAR in Mass and Industry Media

Wheat falls to one-week low on Russian export pressure

Reuters

Chicago wheat slid more than 1% on Tuesday, dropping to a one-week low as cheap Russian grain flooded the market and the docking of ships in Ukraine eased concerns over supplies from the war-torn country.

Corn and soybean futures lost ground with freshly harvested supplies hitting the market in the United States.

The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was down 1.4% at $5.83 a bushel, as of 0330 GMT, after dropping to its lowest since Sept. 12 at $5.82-1/4.

Corn Cv1 slid 0.4% to $4.69-3/4 a bushel and soybeans Sv1 gave up 0.4% to $13.11-1/4 a bushel.

The price of 12.5%-protein Russian wheat for free-on-board (FOB) delivery in October fell to $235 a metric ton last week, the IKAR agriculture consultancy said.

The SovEcon agriculture consultancy, meanwhile, estimated Russia’s monthly shipments at 4.9 million tons in September versus 4.2 million last year.

Also pressuring prices was news that two cargo vessels arrived in Ukraine on Saturday using a temporary corridor to sail into Black Sea ports and load grain, despite the collapse of a safe-passage deal with Russia earlier this year.

“Funds view the lack of action by the Russians as a sell signal,” analysts at StoneX said in a note.

Commodity funds were net sellers of Chicago soybean, wheat, corn, soyoil and soymeal futures on Monday, traders said.

Turning to corn and soybeans, U.S. government data showed the U.S. corn harvest was 9% complete by Sunday and the soybean harvest was 5% complete, both ahead of five-year averages.

However, crop condition ratings hovered at their lowest in a decade, with 51% of corn and 52% of soybeans in “good to excellent” condition, reflecting dry conditions.

Meteorologists and analysts said a large part of Brazil was expected to suffer from extreme heat this week that could hamper the country’s soybean planting.

20.09.23

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