Content ID

336149

GRAINS-Wheat drops on Ukraine corridor extension hopes

* Hopes rise for extension of Ukraine export deal beyond Nov. 19 * Corn and soybeans edge down as China demand doubts also weigh (Updates with European trading, changes byline/dateline) By Gus Trompiz and Naveen Thukral PARIS/SINGAPORE, Nov 15 (Reuters) - U.S. and European wheat futures fell on Tuesday, pressured by signs of progress in talks to extend a wartime export deal for Ukrainian grains. Corn and soybeans edged lower as hopes of continued Ukrainian exports through the Black Sea and worries about Chinese demand countered support from a weaker dollar. The most active wheat contract on the Chicago Board of Trade (CBOT) was down 1.3% at $8.07-1/2 a bushel by 1057 GMT. In Europe, December wheat on Paris-based Euronext was down 1.7% at 318.50 euros ($332.04) a tonne, just off an earlier two-month low. Russia's Foreign Minister Sergei Lavrov on Tuesday said that the United Nations had told him of written U.S. and EU promises to remove obstacles to exporting Russian grain and fertilisers. Bloomberg, citing people familiar with the discussions, reported that Moscow is likely to allow the corridor deal to be renewed after its initial duration expires on Nov. 19. The Kremlin's spokesman later said Russia would announce its decision "at the appropriate time". "This week feels more friendly regarding the corridor," one European trader said. The Kremlin had said on Monday that talks with the United Nations last week had been constructive, raising hopes that the deal can be rolled over smoothly. "The renewal, or otherwise, of Ukraine's Black Sea grain corridor this week remains the elephant in the room," said Tobin Gorey, director of agricultural strategy at the Commonwealth Bank of Australia. "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." Hopes of continued Ukrainian exports along with competitive prices of a record Russian crop have taken attention away from adverse weather in Argentina and Australia in the run-up to harvesting in the southern hemisphere exporting nations. CBOT corn was down 0.4% at $6.54-1/2 a bushel and soybeans eased by 0.3% to $14.36-1/4 a bushel. Private analytics firm IHS Markit Agribusiness, part of S&P Global Commodity Insights, projected an increase in U.S. corn plantings for 2023, according to portions of an IHS client note seen by Reuters. Prices at 1057 GMT Last Change Pct End 2021 Ytd Pct Move Move CBOT wheat 807.50 -11.00 -1.34 770.75 4.77 CBOT corn 654.50 -2.75 -0.42 593.25 10.32 CBOT soy 1436.25 -4.25 -0.30 1339.25 7.24 Paris wheat 318.50 -5.50 -1.70 276.75 15.09 Paris maize 312.25 -5.50 -1.73 226.00 38.16 Paris rape 620.75 -5.25 -0.84 754.00 -17.67 WTI crude oil 85.16 -0.71 -0.83 75.21 13.23 Euro/dlr 1.04 0.01 0.96 1.1368 -8.30 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne ($1 = 0.9592 euros) (Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore Editing by Subhranshu Sahu, Savio D'Souza and David Goodman )

© Copyright Thomson Reuters 2022. Click For Restrictions - http://about.reuters.com/fulllegal.asp

Read more about
Loading...

Talk in Marketing

Most Recent Poll

Will you have enough on-farm storage for harvest?

I just want to see the responses
49% (19 votes)
Yes
36% (14 votes)
Maybe, depending on yields
8% (3 votes)
No, it’s going to be a bin-buster
5% (2 votes)
No, I am looking at new bins or temporary storage
3% (1 vote)
Total votes: 39
Thank you for voting.