SINGAPORE- Chicago wheat futures slid on Tuesday, falling for the first time in three sessions, weighed down by rising expectations that an export corridor deal for Ukrainian grains would be renewed.
Corn ticked lower, while soybeans firmed.
“Market sentiment got a material, but ultimately brief, lift when Saudi Arabia bought a lot more milling wheat at tender than they originally planned,” said Tobin Gorey, director of agricultural strategy at the Commonwealth Bank of Australia.
“The renewal, or otherwise, of Ukraine’s Black Sea grain corridor this week remains the elephant in the room that is tempering activity. We expect the corridor will, ultimately, be renewed. But, like most, we are wary of what kind of disruptive skulduggery Russia’s president might think of.”
The most-active wheat contract on the Chicago Board of Trade (CBOT) fell 0.1 percent to $8.17-3/4 a bushel. Corn lost 0.2 percent to $6.56-1/4 a bushel and soybeans added 0.2 percent to $14.42-3/4 a bushel.
The Kremlin said on Monday that talks with the United Nations last week on a deal safeguarding the shipment of grain from Ukrainian ports had been “fairly constructive”, raising hopes that it can be rolled over smoothly.
Senior UN officials met a Russian delegation in Geneva on Friday to discuss Moscow’s grievances about the Black Sea grain initiative, which has lifted a Russian blockade of Ukraine’s seaports.
Wheat prices rose on Monday with strong demand supporting the market.
Saudi state buyer SAGO said on Monday it had bought just over 1 million tonnes of wheat in an international tender, with traders suggesting Russian wheat may be used to cover a large part of the optional-origin purchase. — Reuters
