CBOT wheat hits four-week low on hopes for Black Sea shipments
WEAT•CBOT wheat futures fell to a four-week low on hopes for a recovery in Black Sea grain exports. December soft red winter wheat closed down 1-1/2 cents at $7.07 per bushel.
1. Black Sea outlook
Chicago Board of Trade wheat futures dropped to a four-week low as traders focused on renewed diplomatic efforts to end the Ukraine war and hopes for a recovery in Black Sea exports. Turkey said it stepped up efforts to re-establish a grain corridor and received a positive response from Ukraine, while cargo movements in the region were near a standstill because of heavy attacks on ships and port infrastructure by Russia and Ukraine.
2. Sales and prices
The U.S. Department of Agriculture said net U.S. wheat export sales for shipment in the current marketing year totaled 267,600 metric tons in the week ended September 17. A poll of analysts estimated sales of 350,000 to 600,000 tons. CBOT December soft red winter wheat closed down 1-1/2 cents at $7.07 per bushel; Kansas City December hard red winter wheat was last down 4-3/4 cents at $7.67, and Minneapolis December spring wheat was 9-1/2 cents lower at $7.20-1/4.
3. Dollar pressure
Grain markets faced additional pressure as the dollar touched a two-month high, making U.S. farm goods look more expensive to importers.
