SINGAPORE- Chicago wheat futures inched higher on Tuesday, recouping some losses from the previous session, as supply concerns rose after Russia suspended its participation from a Black Sea pact that allowed Ukraine to ship grains.
Soybeans rose, although gains were limited by a better-than-expected condition of the US crop, while corn edged higher.
Global grain prices will continue to be volatile until the market is able to decipher the impact of Russia withdrawing from the Black Sea grain initiative, according to Rabobank senior grains analyst Dennis Voznesenski.
Ukraine has been building alternative avenues for exports since the start of the war, he said. “However, they are not yet sufficient enough to entirely compensate for the loss of the Black Sea grain initiative.”
The deal allowing the safe Black Sea export of Ukraine’s grain for the past year expired after Russia quit and warned it could not guarantee the safety of ships in a move the United Nations said would “strike a blow to people in need everywhere.”
