BY ONOME AMUGE
Wheat futures, which have been extremely volatile since Russia’s invasion of Ukraine due to heavy reliance on export from both countries through the Black Sea region, slipped on the Chicago Board of Trade (CBOT) as traders monitored diplomatic efforts to end the Russia-Ukraine conflict, while gauging a continuous disruption to Black Sea grain exports.
The most-active wheat contract lost 1.5 percent at $10.82 a bushel.
Corn futures also traded lower, losing 0.4 percent at $7.51-3/4 a bushel as the feed grain market also assessed the extent to which the conflict in Ukraine could stall Black Sea exports.
According to France’s market analysis firm, Strategie Grains, the war could remove about 11 million tonnes of Black Sea wheat exports and some 12 million tonnes of corn exports from the world market in 2021/22.
On the other hand, soybeans maintained its upward surge, gaining 0.5 percent to $16.76 a bushel as concern over export restrictions in Argentina countered pressure on the oilseed market.
Citing lower-than-expected yields due to adverse weather in 2022, the Buenos Aires grains exchange said Argentina’s 2021/22 soybean, corn and sunflower harvest forecasts could be cut further, while traders also expressed concerns that exports of soymeal and soyoil, of which Argentina is the world’s largest supplier, will be restricted.
As it stands, the South American country has halted registration of new export sales for soybean, with speculations that the government is weighing raising export taxes to help curb high inflation.