Wheat Drops on Easing Black Sea Shipments Concerns, Corn Declines

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Wheat Drops on Easing Black Sea Shipments Concerns, Corn Declines

Wheat futures plunged lower as concerns that the hostilities between Ukraine and Russia will hurt shipments from the Black Sea eased. Corn flopped, tripping the longest winning streak since February.

Ukraine’s foreign minister mentioned modest headway in talks over the crisis, while his Russian counterpart said a solution had not been achieved. The two countries combined output will account for about 20% of worldwide wheat exports this year, according to estimates by the US government. Futures added 1.9% on Aug. 15 on escalating conflicts in Eastern Europe.

“A lot of people were expecting some type of news over the weekend, some further escalation in Ukraine and Russia. Without such, that premium’s off the table this morning,” Rich Nelson of McHenry, Illinois-based Allendale Inc. told Bloomberg in an interview.

December-settlement wheat futures lost 1.1% to $5.55725 per bushel as of 11:28 am on the Chicago Board of Trade, approaching the first loss in three sessions. The price reached a four-year low of $5.185 on July 29 against the backdrop of surplus global grain inventories.

December-settlement corn futures dropped 0.9% to trade at $3.7375 per bushel. Harvests in sections of Ohio and South Dakota will ascend from last year, estimates from the Pro Farmer Midwest Crop Tour showed today.

Anticipation of a record-large yields in some parts of the US will apply pressure on prices, after corn futures last week registered their biggest winning streak in five months.

Soybean futures for settlement in November ascended 0.5% to $10.57 per bushel.

According to Reuters, geopolitical events between Kiev and Moscow affect the grain market because the sources are major exporters of wheat and corn.

Moscow said all restrictions against it sending a humanitarian aid to Ukraine had been eased, although no strides had been made towards halting fighting between government troops and insurgent fighters in eastern parts of Ukraine.

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To contact the reporter of this story; Jonathan Millet at john@forexminute.com