Home Business Wheat drops for second session as Ukraine grain export deal resumes

Wheat drops for second session as Ukraine grain export deal resumes

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SINGAPORE — Chicago wheat lost more ground on Thursday after Russia said it would resume participation in Black Sea grain export deal, reversing its decision and easing concerns over food supplies.

Soybeans slid from a six-week high scaled in the previous session while corn also fell.

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* The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 0.5% at $8.41-3/4 a bushel, as of 0023 GMT, after dropping more than 6% in the previous session.

* Soybeans gave up 0.5% to $14.47-1/4 a bushel, having climbed to their highest since Sept. 22 on Wednesday at $14.58 a bushel and corn lost 0.4% to $6.84-1/2 a bushel.

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* Wheat prices came under pressure on Wednesday after Russia’s decision reversal on the Black Sea export corridor.

* Moscow said it would renew its participation in the U.N.-brokered corridor just four days after suspending its role in the deal saying it could not guarantee the safety of civilian ships crossing the Black Sea because of a drone attack on its fleet there.

* Corn took cues from wheat, with additional pressure noted from news that China’s customs agency updated its list of approved Brazilian corn exporters, potentially clearing the way for exports of Brazilian corn to China.

* Soybean prices have firmed on the back of strength in global vegetable oil markets as well as optimism about soybean export demand from China.

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* Brazilian authorities said on Wednesday they are making headway in their efforts to clear blockades set up across the country by truckers to protest President Jair Bolsonaro’s narrow loss to leftist Luiz Inacio Lula da Silva in an Oct. 30 runoff election.

* The protests has disrupted fuel distribution, industrial activity, food deliveries to supermarkets and shipments of grains to ports.

* Commodity funds were net sellers of CBOT wheat, corn and soymeal futures contracts on Wednesday and net buyers of soyoil and soybean futures, traders said.


* U.S. stocks ended a volatile session lower while Treasury yields were up Wednesday as the U.S. Federal Reserve delivered a three-quarters of a percentage point interest rate hike and Fed Chairman Jerome Powell said it was too soon to speculate over a pause in rate hikes.

DATA/EVENTS (GMT) 0145 China Caixin Services PMI Oct 0930 UK Composite PMI Final Oct 0930 UK Reserve Assets Total Oct 1000 EU Unemployment Rate Sept 1200 UK Bank of England to publishes Monetary Policy Report 1230 US International Trade Sept 1230 US Initial Jobless Clm Weekly 1345 US S&P Global Comp Final PMI Oct 1345 US S&P Global Svcs PMI Final Oct 1400 US Factory Orders MM Sept 1400 US ISM N-Mfg PMI Oct (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)


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