Content ID

334556

GRAINS-Wheat jumps 1.5% on Black Sea supply concerns; corn firms

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Concerns over Russia-Ukraine war supports wheat prices

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Corn rises for 2nd session on lower European production

(Adds quote in paragraph 3, updates prices)

By Naveen Thukral

SINGAPORE, Oct 10 (Reuters) - Chicago wheat futures jumped more than 1% on Monday, underpinned by concerns over the Russia-Ukraine war slowing grain shipments from the Black Sea region.

Corn rose for a second session as lower production in Europe supported prices while soybeans gained 1.8%.

"Ukraine's exports continue to be a focus for market chatter," said Tobin Gorey, director of agricultural strategy at the Commonwealth Bank of Australia. "Whether the current export corridor will remain open beyond late November is still a focus issue."

The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 1.5% at $8.93 a bushel, as of 0112 GMT. Corn added 0.5% to $6.86-3/4 a bushel and soybeans rose 1.7% to 13.90-1/4 a bushel.

Tensions between Russia and Ukraine are supporting wheat prices as market is waiting to see how the Kremlin responds to the blast that hit Russia's only bridge to Crimea.

Russian President Vladimir Putin accused Ukraine of orchestrating the explosion of the bridge linking Russia and Crimea, an act he described as terrorism.

The blast on Saturday on the bridge over the Kerch Strait, a key supply route for Moscow's forces in southern Ukraine, had prompted gleeful messages from Ukrainian officials but no claim of responsibility.

Lower production in Europe supported corn futures.

The European Union's maize harvest is in full swing and field work is confirming widespread drought damage that analysts expect to push the feed grain crop to a 15-year low.

The European Commission last Friday cut its EU maize crop forecast to 55.5 million tonnes, joining other observers in projecting the lowest volume since 2007.

Large speculators raised their net long position in CBOT corn futures in the week ended Oct. 4, regulatory data released on Friday showed.

The Commodity Futures Trading Commission's weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, trimmed their net short position in CBOT wheat and cut their net long position in soybeans. (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)

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