GRAINS-Soybean and corn up on US weather threat, wheat falls
DBA•Azov Sea route still seen as open to resolution
Wheat rose sharply on Friday on fears shipping attacks by Ukraine could disrupt the important Azov Sea export route for Russian wheat. Azov shipping on Monday was reported as restricted.
“Wheat is falling as the market seems to be assessing that the threat to Black Sea grain shipments by Ukraine and Russia and disruption of Azov Sea shipping may not be as serious as thought on Friday,” Ammermann added.
“There is expectation that some answers will be figured out to keep Russian and Ukrainian wheat shipments moving as has happened in the past, although the recent attacks on ports and ships still present a risk.”
Traders watch Chinese demand and supply tightness
“Soybeans and corn are seeing support today from concern about hot, dry weather in U.S. grain belts, which could create the threat of crop stress and lower yields,” said Matt Ammermann, commodity risk manager at StoneX. “There is also support from hopes of more Chinese buying of U.S. soybeans and corn along with higher crude oil prices.”
“The USDA report on Friday estimated lower than expected soybean and corn inventories. If U.S. soybean and corn yields are low and China does buy more from the U.S., markets could be facing a problem of tighter supplies.”
Soybeans and corn rise on weather and oil concerns
Chicago soybeans and corn rose on Monday, supported by concerns that hot, dry weather forecast in the United States could threaten crops.
Rising crude oil prices after intensified conflict between the U.S. and Iran, and Iran's claim to have closed the Strait of Hormuz, also supported grains.
