Wheat prices drop from record high; soybeans rise 1.2%

Chicago wheat futures lost ground on Wednesday, slipping almost 4% from a record high hit in the previous session on worries over global supplies due to the Russia-Ukraine war.

Soybeans rose more than 1% while corn ticked higher.

“Further falls are possible in the near term. We suspect the falls will probably be shallow,” said Tobin Gorey, director of agricultural strategy at the Commonwealth Bank of Australia, referring to the move in wheat futures.

“The world does have a very real problem with wheat supply right now. To be clear, that does not mean the world is literally running out of wheat. Instead, the problem that the market must source wheat from less and less accessible, and so more expensive sources.”

The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was down 3.9% at $12.37 a bushel, as of 0207 GMT, after climbing to an all-time high of $13.64 a bushel in the last session.

Corn Cv1 rose 0.1% to $7.54 a bushel, while soybeans Sv1 added 1.2% to $17.10 a bushel.

While Ukrainian ports remain shut, deepening Western sanctions against Moscow are discouraging importers and shipowners from deals for Russian grain.

Rising corn and wheat prices amid the crisis in Ukraine encouraged Brazil to trade in more of these commodities than would be expected at this time in the season, market sources told Reuters.

In the first days of March, Brazil closed export deals for at least half a million tonnes of corn, they said, a volume corresponding to February’s entire estimated corn exports.

The U.S. Agriculture Department will release its monthly World Agricultural Supply and Demand Estimates report, which will include its assessment of Brazilian production, on Wednesday.

Farmers in Argentina have sold 16.6 million tonnes of corn during the 2021/22 season as of March 2, the Ministry of Agriculture said on Tuesday.

Source: Hellenic Shipping News

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