Mexico City | Reuters – Chicago grain and soybean futures ended lower on Wednesday after inspections resumed on ships transporting Ukrainian grain from the Black Sea and a drop in crude oil pushed prices lower.
A Ukrainian official said that “vessel inspections resumed despite attempts by the RF (Russian Federation) to disrupt the deal.” Kiev faces a fight to extend the deal as well as growing resistance to its grain being shipped through Eastern Europe.
Weather forecasts, meanwhile, pointed to rainfall next week in some drought-hit US winter wheat belts of hard red wheat, although soybean and corn planting continued.
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“Corn fell as Ukraine can ship grain for now and forecasts allow for window planting,” said Charlie Sernatinger, head of grains at Marex Capital Markets, in a note to clients.
A stronger US dollar and weaker crude oil on fears that upcoming Federal Reserve rate hikes could slow energy demand also dragged grain prices.
The most active wheat contract on the Chicago Board of Trade (CBOT) closed 16-1/4 cents at $6.81-3/4 a bushel (all in US dollars).
Soybeans were 12-3/4 cents lower at $15.06-1/2 a bushel and corn closed 5-1/4 cents lower at $6.72-1/4 a bushel.
Wheat markets rebounded earlier this week, recovering after hitting their lowest level since 2021 in late March, amid bans on Ukrainian grains announced by several Eastern European Union countries and growing uncertainty over the Black Sea Grains Agreement.
However, large expected Russian wheat exports helped cap prices.
The European Union plans to introduce import restrictions on Ukrainian grain as pressure mounted on Brussels on Wednesday to craft an EU-wide solution after individual countries began banning some Ukrainian imports that had forced local farmers to cope with an influx of cheaper ones Ukrainian products to compete including corn and wheat.
— Reporting for Reuters by Cassandra Garrison in Mexico City, Gus Trompiz in Paris and Naveen Thukral in Singapore.
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