June 24 (Reuters) – Chicago wheat futures on Friday hit their lowest in nearly four months and headed to a second consecutive weekly slump, dragged down by growing concerns over a global economic downturn, while an improved outlook for U.S. crops also added pressure.
Ongoing talks over a shipping corridor for Ukrainian grain exports trapped amid a four-month-old war also weighed on prices this week.
Corn futures fell, but soybeans edged higher after a four-day slide.
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Fundamentals
- The most-active September wheat contract on the Chicago Board of Trade (CBOT) Wv1 was down 0.8 percent at US$9.42 a bushel, as of 0140 GMT, after earlier touching its lowest since March 1 at US$9.38-3/4.
- Most-traded November soybeans rose 0.1 percent to US$14.16-3/4 a bushel, while most-active December corn lost 0.2 percent to US$6.54 a bushel.
- Traders kept an eye on talks over a safe corridor for Ukrainian grain, while Washington has sought to avert repercussions of sanctions on Russian food and fertilizer exports.
- British Prime Minister Boris Johnson said the country was willing to assist with demining operations off Ukraine’s southern coast and was considering offering insurance to ships to move millions of tonnes of grain stuck in the country.
- Ankara was investigating claims that Ukrainian grain has been stolen by Russia and shipped to countries including Turkey, but probes had not found any stolen shipments so far, Turkish Foreign Minister Mevlut Cavusoglu said on Thursday.
- China’s soymeal inventories have tripled in the last three months as large volumes of soybeans arrived in the country where demand for the animal feed ingredient is weak, analysts and traders said.
- China’s most-active soymeal futures contract fell nearly 3 percent in early Friday trade, while rapeseed meal futures slumped 3.3 percent.
- The U.S. Department of Agriculture on Friday will issue weekly U.S. grain and soybean export sales data.
