Wheat around two-year high on Black Sea supply worry, then drops
WEAT•Black Sea disruptions keep wheat near two-year highs
HAMBURG, July 20 (Reuters) - Chicago wheat remained close to two-year highs on Monday as disruptions to Black Sea shipments were feared after Russian and Ukrainian attacks on grain ports and ships continued, but slipped slightly as the attacks did not seem so intense as last week.
Soybeans and corn rose on concerns about dry weather in the U.S. and Chinese demand for U.S. beans.
Chicago Board of Trade most-active wheat Wv1 fell 0.5% to $6.78-3/4 a bushel at 1134 GMT, close to previous two-year highs hit late last week.
Soybeans Sv1 rose 1.2% to $12.17-3/4 a bushel, corn Cv1 rose 1.2% to $4.73-1/4 a bushel.
Wheat prices rose in the past week after attacks on grain ships and ports in the Black Sea and the Sea of Azov by Ukraine and Russia. A Russian missile strike on a ship carrying corn near Ukraine's Odesa port killed 10 people, Ukrainian officials said on Monday.
“Wheat is overall supported by the attacks on ports and shipping by Ukraine and Russia,” said Matt Ammermann, commodity risk manager at StoneX. “But rises are limited as the grain terminals and ships do not seem to be taking such heavy strikes as last week with Ukraine concentrating more on attacking tankers.”
“There is also relief that Ukraine has not attacked the huge grain terminals in the huge Russian wheat export port of Novorossiysk, such attacks could have an enormous impact on wheat markets.”
Soybeans were underpinned by rising crude oil and sales of U.S. soybeans to China.
“Corn and soybeans are supported by concern about dry weather forecast this week in U.S. grain belts which could potentially be negative for crop yields," Ammermann said.
Two large purchase tenders issued by Korean buyers also underpinned corn. GRA/TEND
