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Wheat retreats on hopes Ukraine's grain shipments may continue

By Michael Hogan

HAMBURG, Nov 1 (Reuters) - Chicago wheat and corn futures fell on Tuesday as grain shipments continued from Ukraine despite Russia suspending its participation in an export agreement for a safe shipping channel from Ukrainian ports.

Soybeans rose on hopes of more U.S. export sales to China, while protests were eyed in Brazil - including road blocks - after the presidential election.

Chicago Board of Trade most-active wheat was down 1% to $8.73-1/4 a bushel at 1138 GMT, while corn was down 0.3% to $6.89-1/4 a bushel. Soybeans rose 1.0% to $14.34-1/2 a bushel.

Markets surged on Monday after Russia suspended its involvement in an agreement allowing Ukraine to make grain and other food shipments in a safe Black Sea shipping corridor.

But more grain ships left Ukrainian ports on Tuesday following vessel sailings on Monday.

“Wheat and corn are weakened today on expectations the safe shipping channel for Ukraine’s exports may not be ended but could continue in some form,” said Matt Ammermann, StoneX commodity risk manager. “I think markets are giving attention to the statement by Russian President Putin that Russia is suspending but not ending its participation in the safe shipping channel.”

“Meanwhile, ships have continued to sail from Ukraine today with grain shipments despite the Russian move. But the situation is very fluid and there is no clear overview of what is going on.”

Wheat falls were limited after the U.S. Department of Agriculture on Monday said the U.S. winter wheat crop's condition suffered after drought.

“Soybeans are being strengthened by hopes of more Chinese buying,” Ammermann said. “There is also some attention on the political situation in Brazil with protest road blocks set up after the presidential election.”

“But it is perhaps too early to talk about any real disruption to Brazil’s soybean exports.”

(Reporting by Michael Hogan in Hamburg Additional reporting by Naveen Thukral in Singapore Editing by Mark Potter)

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