Grains-Wheat slips on hopes for Iran deal
DBA•Broader markets
- Oil prices skidded, and stocks wobbled on Monday as hopes for peace in the Middle East grew, while the yen jumped suddenly after the U.S. and Japan confirmed joint intervention to prop up the frail currency. MKTS/GLOB
Geopolitics and trade flows
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The main grain lobby group of Russia, the biggest wheat exporter, warned on Friday that Ukrainian drone attacks on Russian ships and ports could shut down grain shipments via the Black Sea, raising prices.
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In soybeans, Chinese government buyers purchased at least 14 cargoes of U.S. beans on Friday, traders said, among the largest single-day purchases since China restarted purchases from the U.S. in late June.
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Large speculators switched to a net long position in CBOT corn futures in the week to July 28, regulatory data showed. They trimmed their net short position in wheat and raised their net long position in soybeans.
Market moves and supply factors
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The most-traded wheat contract on the Chicago Board of Trade (CBOT) Wv1 was down 0.5% at $6.36-1/4 a bushel at 0121 GMT.
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CBOT corn Cv1 fell 0.9% to $4.59-3/4 a bushel and soybeans Sv1 slipped 0.7% to $11.79-1/4 a bushel.
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Oil prices tumbled around 4.5% to $84 a barrel after U.S. President Donald Trump held off on a fresh attack on Iran, seeking to reach a quick deal that would halt Tehran's nuclear ambitions and reopen the Strait of Hormuz.
