BEIJING- Chicago wheat futures eased on Tuesday after climbing overnight on concerns of an escalating war in the Black Sea breadbasket region, following the White House’s move to lift curbs on Ukraine using US missiles to strike Russian territory.
The most-active wheat contract on the Chicago Board of Trade fell 0.27 percent to $5.64 a bushel while corn shed 0.06 percent to $4.29 a bushel.
The soybean contract was down 0.35 percent at $10.06 a bushel after a two-day rise as the US dollar pulled back from a rally and the anticipation of a large South American harvest further weighed on the market.
US President Joe Biden’s administration lifted restrictions blocking Ukraine from using U.S.-provided weapons to strike deep into Russian territory, sources said, sparking fears of stepped-up tensions in the region.
Ukraine plans to conduct its first long-range attacks in the coming days, the sources added.
The gains in wheat from the concerns have faded, but it still seems like a risky proposition to be bearish on wheat with global wheat supplies still projected near multi-year lows, Bergman Grains Research said in a note.
US winter wheat crop conditions have improved more than expected over the past week after the much-needed rain in the Plains, the US Department of Agriculture’s (USDA) weekly crop condition report showed on Monday.
