U.S. wheat futures fell to their lowest level in more than two weeks on Monday on hopes of a de-escalation of the Black Sea conflict, while soybeans bounced on rising energy prices and the threat of Midwest harvest delays, analysts said.
Corn firmed, following soybeans and a 2% climb in crude oil, but wheat's retreat capped gains.
Chicago Board of Trade December wheat WZ26 settled down 3-1/2 cents at $7.22 per bushel after dipping to $7.10, the contract's lowest since August 26.
CBOT November soybeans SX26 ended up 7-3/4 cents at $13.04-1/4 a bushel and December corn CZ26 finished up 3 cents at $5.33-1/4 a bushel.
Soybeans gain on oil, harvest delays and export hopes
Wheat turned lower after U.S. President Donald Trump said that Ukraine and Russia had agreed not to hit each other's energy targets.
"Managed money length appears to be interpreting this renewed pressure from the U.S. as potentially leading to de-escalation regarding commodity flow through the Black Sea, but only time will tell if this actually translates to an improvement on the ground," StoneX analyst Mike Castle said in a client note.
Managed commodity funds trimmed a modest net long position in CBOT wheat futures in the week to September 8, weekly U.S. regulatory data showed.
CBOT soybeans rallied as crude oil CLc1 rose on escalating tensions in the Middle East. Soyoil BOv1 is a feedstock for biodiesel fuel.
Also, forecasts called for heavy rains that could slow field work in portions of the Midwest this week, including Iowa, the top U.S. corn producer and No. 2 soybean state.
"Some very heavy rain coming for Iowa this week is not going to be great for the harvest," said Randy Place, analyst with the Hightower Report.
USDA updates harvest progress and soybean inspections
After the markets closed, the U.S. Department of Agriculture reported harvest progress at 8% for corn and 6% for soybeans as of Sunday, ahead of their respective five-year averages of 6% and 3%.
Meanwhile, traders were optimistic about Chinese export demand for U.S. soy ahead of Chinese President Xi Jinping's upcoming visit to Washington.
"The beans have the best look to them right now, just due to the Chinese coming to town in about 10 days. You would think they would be continuing to buy up to the meeting," Place said.
The USDA reported that 672,759 metric tons of U.S. soybeans were inspected for export in the latest week, topping a range of trade expectations for 300,000 to 600,000 tons.
DBA•
