Wheat rises as Russia threatens to scrap Black grain deal

FE Team | Published: April 24, 2023 20:30:06

SINGAPORE, Apr 24 (Reuters): Chicago wheat climbed for the first time in four sessions on Monday after Russia threatened to terminate a grain deal allowing Ukrainian exports, although gains were trimmed by forecasts of much-needed rains in the US winter crop areas.
"Talk of rain for the Kansas region over the near term plus a sluggish export pace are factors kept sellers active," commodities research firm Hightower said in a report.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.3 per cent at $6.75 a bushel, as of 0301 GMT. Corn Cv1 lost 0.5 per cent to $6.12 a bushel and soybeans fell 0.1 per cent to $14.47 a bushel.
Grain markets are facing uncertainty over exports from war-torn Ukraine.
Former Russian president Dmitry Medvedev said on Sunday that if the G7 moved to ban exports to Russia, Moscow would respond by terminating the Black Sea Grain deal that enables vital exports of grain from Ukraine.
The Group of Seven countries are considering a near-total ban on exports to Russia, Japan's Kyodo news agency reported last week, citing Japanese government sources. Russia has repeatedly threatened to scrap its participation in the grain deal, which is due to expire on May 18.
A deal allowing the safe Black Sea export of Ukraine grain could start winding down next week after Russia said it will not approve any new vessels unless their operators guarantee the transits will be done by May 18 - "the expected date of ... closure."
Corn futures are under pressure on positive outlook for US planting.
In the soybean market, a drop in prices due to abundant local supplies is making Brazil an attractive origin, with at least two vessels carrying a combined 79,150 tonnes of Brazilian beans to the US in the next few days, according to shipping data.
Large speculators increased their net short position in CBOT corn futures in the week to April 18, regulatory data released on Friday showed.