Paris/Chicago | Reuters – Wheat futures plummeted from Chicago to Europe on Wednesday after Russia said it would resume its participation in a deal to export grain from war-torn Ukraine, a reversal of its weekend decision to pull out of the deal in a move that had sent wheat futures surging higher.
Corn followed wheat lower on the Black Sea news, as well as worries about weak export demand for U.S. supplies. But soybean futures ended higher after a choppy session, lifted by strength in global vegetable oil markets.
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Chicago Board of Trade December wheat WZ2 settled down 56-1/2 cents at $8.46 per bushel after dipping to $8.37-3/4, one tic away from its 65-cent daily limit.
Wheat also tumbled in Europe where the benchmark December contract BL2Z2 on Paris-based Euronext ended down 16.5 euros or 4.6 per cent at 341.25 euros per tonne, nearly filling a gap marked at the open on Monday.
CBOT December corn CZ2 settled down 10-1/4 cents at $6.87-1/2 per bushel while January soybeans SF3 finished 6-1/4 cents higher at $14.54 a bushel.
Wheat set the weaker tone after Russia’s reversal on the Black Sea export corridor. Moscow said it would renew its participation in the U.N.-brokered corridor just four days after suspending its role in the deal saying it could not guarantee the safety of civilian ships crossing the Black Sea because of a drone attack on its fleet there.
“These latest announcements remove part of the risk premium for exporters so we are losing what we had gained over the past days in wheat,” Arthur Portier of consultancy Agritel said.
“However, we still don’t know whether the deal will be extended later this month so uncertainty remains,” he added.
Corn took cues from wheat, with additional pressure noted from news that China’s customs agency updated its list of approved Brazilian corn exporters, potentially clearing the way for exports of Brazilian corn to China.
“With China giving the green light to import from several different Brazilian locations, traders are a little nervous that will steal some market share from the United States. We are already off to a poor start for (export sales) commitments,” said Terry Reilly, senior analyst with Futures International in Chicago.
Soybeans firmed on strength in global vegetable oil markets, including CBOT soyoil BOZ2 and Malaysian palm oil FCPOc3 futures, as well as optimism about soybean export demand from China. POI/
– Additional reporting by Naveen Thukral in Singapore and Sybille de La Hamaide in Paris.
