HAMBURG (Reuters) – Chicago wheat and corn futures fell on Monday, as talks started about renewing the shipping agreement which allows Ukraine to export grains into global markets.
Soybeans were underpinned by continued concern about drought damaging Argentine crops.
Chicago Board of Trade most-active wheat fell 0.7 percent to US$6.74-1/4 a bushel at 1144 GMT. Soybeans eased 0.05 percent to US$15.06-1/4 a bushel, and corn fell 0.9 percent to US$6.11-1/4 a bushel.
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Negotiations began on Monday between U.N. officials and Russia’s deputy foreign minister on possibly continuing the deal allowing the safe export of grain from Ukrainian Black Sea ports which expires on March 18.
“As such a large wheat and corn exporter, Ukraine’s supplies are vital to world markets,” said Matt Ammermann, StoneX commodity risk manager.
“There are expectations in grain markets that the agreement will be extended with the deadline now only a few days away. Russia and Ukraine will probably not get all that they want, but I think importing countries will have been lobbying behind the scenes to get the shipping agreement extended.”
He stressed that China and Turkey are among the major importers of Ukrainian grain through the channel.
Markets shrugged off continued weakness in the U.S. dollar on Monday after the fallout from the collapse of Silicon Valley Bank.
“Wheat saw some support last week as investors turned to safe havens following the collapse of the Silicon Valley Bank, but this is now fading today,” Ammermann said. “Corn is also seeing additional weakness from expectations U.S. farmers will expand their plantings.”
“Soybeans are underpinned by continued concern about drought-damage to crops in Argentina, but rises are limited by expectations of a huge crop in Brazil.”
