U.S. grains: Crop data awaited as grains fall with other commodities

Chicago | Reuters — U.S. wheat, corn and soybean futures fell on Monday as worries over coronavirus cases in China weighed on commodity markets while grain traders also adjusted positions ahead of key U.S. crop reports due later this week.

Crude oil dropped sharply as China’s financial hub, Shanghai, launched a lockdown to contain surging COVID-19 cases. The risk of renewed economic disruption due to the pandemic added further uncertainty to markets that have been grappling with Russia’s invasion of Ukraine.

“The broad selloff in commodities continued into midday today, as fund managers react to massive shutdowns in China due to COVID, as well as to lingering hopes for peace talk success in Ukraine,” Arlan Suderman, StoneX chief commodities economist, wrote in a note to clients.

Ukraine and Russia were preparing for the first face-to-face peace talks in more than two weeks, but a senior U.S. official said Russian President Vladimir Putin did not appear ready to make compromises to end the war. Ukrainian officials also played down the chances of a major breakthrough at the talks, due to be held in Istanbul.

Chicago Board of Trade May wheat settled down 45-1/4 cents at $10.57 per bushel after dipping to $10.47, its lowest level since March 17 (all figures US$). CBOT May soybeans ended down 46 cents at $16.64-1/4 a bushel and May corn finished down 5-1/2 cents at $7.48-1/2 a bushel.

CBOT wheat posted the biggest declines on a percentage basis, given signs that global importers have been able to find adequate wheat supplies despite disruptions stemming from the Russia-Ukraine conflict.

France will ensure that Egypt, a top importer, gets the wheat it needs in the coming months, French Finance Minister Bruno Le Maire said.

Traders have exported the first supplies of Ukrainian corn to Europe by train as the country’s sea ports remain blocked due to the Russian invasion, APK-Inform agriculture consultancy said on Sunday.

Meanwhile, attention was turning to spring planting in the Northern Hemisphere, with the Ukraine war and questions about global fertilizer supplies adding uncertainty.

Ahead of the U.S. Department of Agriculture’s U.S. planting intentions report on Thursday, analysts surveyed by Reuters on average expect that U.S. farmers will plant less corn and more soybeans this year.

USDA will also estimate U.S. quarterly grain stocks as of March 1.

— Reporting for Reuters by Julie Ingwersen in Chicago; additional reporting by Gus Trompiz in Paris, Hallie Gu in Beijing and Naveen Thukral in Singapore.