(Bloomberg) (Bloomberg) — Wheat in Chicago fell the steepest, as was permitted by the exchange, based on better outlooks for Ukraine grain exports in addition to US conditions for crop production.The soybeans and corn also plummeted.
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Russia has discussed Black Sea exports with Turkey on Monday and has said that it was willing to with Ukrainian exports, but the Kremlin offered no specifics and certain analysts voiced doubts.In the US the United States, a weather forecast was favorable for the vast majority part of the Farm Belt, and a report on wheat planting showed that it was progressing ahead of the expectations.
Grains have been traded at record levels since the Russian invasion of Ukraine affected trade routes, resulting in an astronomical rise in the price of livestock feed and food items.The weather woes, such as drought in some regions of North America and flooding in other areas, have heightened concerns about shortages of food.Market participants are looking for indications of what conditions could look like in the coming months, as the growing season starts.
“We are not seeing confirmation yet of a threatening summer forecast,” Rich Nelson the chief strategist of the commodity brokerage Allendale Inc., said in an email.A 30-day forecast for the weather released by the US government on Tuesday afternoon showed “no yield threat” to crops, he noted.
The USDA’s latest report on the planting of crops can impact prices.Corn seedings at the end of last week were 86% completed which is in line with the average Bloomberg estimation of the survey.Sowing of spring wheat that has been delayed because of rain and cold temperature in northern Plains has surpassed expectations with 73 percent.This compares to 49% of the wheat that was planted the previous week.
The increased prospects for world supplies sent the most active Chicago wheat futures falling by as much as 6.1 percent to their daily limit of $10.875 one bushel. They ended the day at their lowest ever since the 4th of May.The July contract that is tied to hard-red winter wheat was also impacted to the limit of exchange.
Corn dropped 3.1 percent to reach $7.535 per bushel, which is the lowest price since the 7th of April.Soybeans dropped 2.8 percent, the largest fall since April 11. to close the month, barely changed at $16.8325 per bushel.
In the soft commodities sector sugar was the one that fell the most within 3 weeks New York in the wake of oil pricesthat decreased in response to news about OPEC members are contemplating exempting Russia from the organization as per Bruno Lima, an analyst at StoneX in Campinas, Sao Paulo.Lower fuel prices reduce the incentive to mills located in Brazil which is the largest exporter, and to produce more ethanol rather than the sweetener.The rise of cocoa and coffee.
