U.S. grains: Wheat, corn fall as fears of Black Sea disruption retreat
Soybeans down on chance of South America rain
| 2 min read
CBOT March 2022 wheat (candlesticks) with 20-, 50- and 100-day moving averages (yellow, orange and dark green lines). (Barchart)
Chicago | Reuters — Chicago Board of Trade wheat and corn futures fell on Tuesday as Moscow’s announcement that some of its troops were returning to base after drills tempered investor fears of a Russian invasion of Ukraine that could disrupt Black Sea export flows.
U.S. soybeans fell as traders assessed chances for rain in dry growing belts in Argentina and Southern Brazil.
The most-active wheat contract on the Chicago Board of Trade (CBOT) lost 19-1/2 cents, to $7.79-3/4 a bushel (all figures US$).
CBOT soybeans fell 18-3/4 cents, to $15.51-1/4 a bushel. Corn settled 17-3/4 cents lower at $6.38 per bushel, falling 2.71 per cent, its biggest daily decline since July 23, 2021.
Russia said some military units would return to their bases after exercises near Ukraine, while also indicating that dialogue would continue with the West on security issues.
“There’s indications that all sides are talking a little more thoroughly about the situation,” said Jack Scoville, market analyst at The Price Futures Group.
Traders remained cautious, given that Russia’s parliament asked President Vladimir Putin to recognize two breakaway regions in eastern Ukraine as independent.
Meanwhile, soybeans fell as weather forecasts showed increased chances of rain for Argentine crops next week, but traders remained cautious about harvest prospects following droughts in Argentina and neighbouring Paraguay and southern Brazil.
“There’s been some showers down there, but the best rains are like a week away,” Scoville said.
The U.S. Department of Agriculture’s Brazil attache on Monday night projected the country’s 2021-22 soybean production at 134.5 million tonnes, significantly higher than most private estimates.
Fears of South American production losses have pushed up July and August soybean futures, as analysts predict a potential shortfall of supplies.
“That’s the window of time where they could run out of beans in South America, and we don’t have any beans to sell yet (in the U.S.),” said Dan Smith, senior risk manager at Top Third Ag Marketing.
Exporters sold 101,000 tonnes of old crop and new crop soybeans for delivery to Mexico, USDA said.
— Reporting for Reuters by Christopher Walljasper in Chicago.
