HAMBURG, April 11 (Reuters) – Chicago wheat touched two-week highs on Monday on concern that fighting in Ukraine will continue to disrupt Black Sea region exports.
The U.S. Department of Agriculture (USDA) on Friday cut its forecast of global wheat stocks to a five-year low as fighting between Ukraine and Russia disrupts shipments from the Black Sea region.
Chicago Board of Trade most active wheat rose 1.6 percent to USD$10.76 a bushel by 1057 GMT, after earlier on Monday hitting USD$10.86-1/4, its highest since March 28.
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Soybeans fell 0.3 percent to USD$16.83 a bushel, corn rose 0.4 percent to USD$7.72-1/4 a bushel.
“Wheat and corn are again being supported today by the concern about the continuing war in Ukraine, with no real signs that a peaceful settlement could be found soon which could bring a rapid re-start to Ukraine’s wheat and corn exports,” said Matt Ammermann, StoneX commodity risk manager. “Markets are again adding a war risk premium today.”
“If Ukraine’s exports remain all but halted and Russia’s stay reduced, the focus is likely to remain on the alternative global supplies. This could make markets very sensitive to any adverse weather in exporters like the United States which could reduce supplies available to the world market.”
The USDA’s estimate of U.S. corn ending stocks was unchanged but the USDA cut Ukraine’s corn exports by 4.5 million tonnes to 23 million tonnes.
“There is concern cold weather in parts of the United States is slowing corn plantings, which is also supportive to corn today,” Ammermann said. “It looks increasingly doubtful that the U.S. will achieve an early corn planting completion.”
“This is also weakening soybeans today, as if U.S. farmers do not plant all the corn they want they might plant more soybeans as the U.S. plantings report on March 31 has already suggested.”
