Black Sea Disruptions Lift Wheat Prices

PHOTO CAPTION: FILE PHOTO: Grain shipments at the KSK terminal in the Port of Novorossiysk, Russia, July 12, 2018. IvanStudenov/Wikimedia Commons, CC BY-SA 4.0. Cropped, darkened and overlaid with text by OAF Nation

PARIS/SINGAPORE, July 29 — Chicago wheat futures edged higher Wednesday as renewed disruptions to Black Sea grain exports raised concerns about supplies following continued Russian and Ukrainian attacks on vessels and port infrastructure.

Corn and soybean futures declined.

“Ports remain severely disrupted, but the markets appear to believe that this situation will not last, which is keeping the geopolitical risk premium in check,” a French trader said.

The most actively traded wheat contract on the Chicago Board of Trade was up 0.3% at $6.64-1/2 per bushel at 1143 GMT.

Soybeans fell 1% to $12.07-3/4 per bushel, while corn declined 0.5% to $4.78 per bushel.

Concerns about Black Sea exports increased after three major Russian grain terminals restricted truck deliveries. The terminals cited greater shipping risks following recent attacks and changes in grain flows after restrictions in the Sea of Azov.

A missile strike also hit Taganrog, a Russian grain-export hub on the Sea of Azov, highlighting security risks affecting the region’s supply chains.

In the United States, the Department of Agriculture said after markets closed Monday that 63% of the corn crop was rated in good-to-excellent condition as of Sunday, down from 67% one week earlier.

The share of soybeans rated good to excellent fell to 63% from 66%.

Ratings for both crops were below analysts’ average estimates.

China’s state stockpiler Sinograin said Tuesday that it would auction about 500,000 metric tons of imported soybeans Friday, its largest such sale since January.

Traders said the auction could help clear storage space before new shipments of U.S. soybeans arrive.

Brazil is expected to export a record 115.4 million metric tons of soybeans in 2026, industry group Abiove said Tuesday.

Abiove raised its export forecast by 1.1% from its June projection and also increased its estimate for domestic soybean crushing.

Among the most active contracts, Chicago wheat was at 664.50 U.S. cents per bushel, up 2 cents, or 0.3%.

Chicago corn was at 478 cents per bushel, down 2.5 cents, or 0.52%, while soybeans were at 1,207.75 cents, down 12.25 cents, or 1%.

Paris wheat was unchanged at 227.75 euros per metric ton. Paris maize fell 1.50 euros, or 0.6%, to 247 euros, while Paris rapeseed rose 44.25 euros, or 9.9%, to 491.25 euros.

The euro was at $1.14, down 0.02%.

(Source: Reuters)