Wheat falls as markets monitor Black Sea export prospects
WEAT•Chicago wheat fell 0.3% to $7.04-1/2 a bushel as traders assessed whether diplomatic efforts could ease disruption to Black Sea grain exports. Corn declined 0.3%, while soybeans gained 0.2%.
1. Grain prices diverge
The most-traded Chicago Board of Trade wheat contract was down 0.3% at $7.04-1/2 a bushel by 0109 GMT. Corn fell 0.3% to $5.26-1/2 a bushel, while soybeans rose 0.2% to $13.21 a bushel.
2. Black Sea shipping outlook
Renewed diplomatic efforts to end the Ukraine war focused traders on Black Sea agricultural exports. Ukrainian President Volodymyr Zelenskiy said India, Turkey, Egypt and other Middle Eastern countries were taking part in talks on unblocking shipping. Turkey had submitted shipping-security proposals to Moscow, but substantive negotiations were not under way.
3. Supply disruptions persist
Traders hoped a truce could help restore cargo movements, which were near a standstill because of heavy attacks on ships and port infrastructure by both sides. Russia could quickly restart up to 80% of its grain terminal capacity in the Black Sea and Sea of Azov if diplomatic efforts led to a ceasefire. Continued attacks on ports and vessels tempered expectations for a recovery in shipments, while importers in Asia, the Middle East and Africa struggled to secure supplies.
