SINGAPORE — Chicago wheat lost more ground on Wednesday, with prices dropping to their lowest in more than a week, as the resumption of maritime grain exports from Ukraine eased supply concerns.
Corn and soybeans rose for the first time in three sessions, although better-than-expected weekly U.S. crop ratings limited gains.
“The wheat market is reacting to Ukrainian grain exports,” said one Singapore-based trader. “The price direction will depend on how much wheat and corn actually come out of Ukraine in the coming weeks.”
The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 0.3% at $7.72 a bushel, as of 0257 GMT. Earlier in the session, the contract dropped to its lowest since July 25 at $7.68 a bushel.
Corn added 0.3% to $5.96 a bushel and soybeans rose 0.5% to $13.92-3/4 a bushel.
The first grain-carrying ship to leave Ukrainian ports in wartime safely anchored off Turkey’s coast on Tuesday, while a senior official said Ankara expects roughly one grain ship to depart from Ukraine every day as long as the export agreement holds.
The first ship, the Razoni, carrying 26,527 tonnes of corn to Lebanon, anchored near the Bosphorus entrance from the Black Sea at around 1800 GMT, some 36 hours after departing from Ukraine’s Odesa port.
Global wheat export business picked up this week. Algeria and Jordan bought optional-origin wheat, traders said, while buyers in the Philippines, South Korea, Tunisia and Japan tendered to buy wheat.
Corn and soy futures faced pressure on improving U.S. production prospects. In a weekly report released after Monday’s market close, the U.S. Department of Agriculture (USDA) showed an improved rating for soybeans while conditions held steady for corn, countering trade expectations for downgrades after a hot week in the Midwest
Commodity brokerage StoneX projected U.S. 2022 corn production at 14.417 billion bushels, with an average yield of 176.0 bushels per acre (bpa). The company estimated this year’s U.S. soybean harvest at 4.490 billion bushels, with an average yield of 51.3 bpa.
The figures for both crops fell just below the current projections from the USDA, which is scheduled to release its updated estimates on Aug. 12.
Commodity funds were net sellers of CBOT corn, wheat, soybean and soyoil futures contracts on Tuesday and net buyers of soymeal futures, traders said.
(Reporting by Naveen Thukral; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)