Wheat rises on Black Sea supply concerns

Soybeans rise on worries over south Brazil floods

FE Team | Published: May 17, 2024 22:11:23

PARIS/SINGAPORE, May 17 (Reuters): Chicago wheat rose on Friday as worries about weather damage in Russia and latest headlines from Moscow's war with Ukraine kept attention on supply risks in thecrucial Black Sea export zone.
Soybeans extended gains as forecasts for more rain in southern Brazil fuelled concern about flood losses to soy crops. Corn was little changed as the market assessed US planting weather.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.6% at $6.67 a bushel by 1152 GMT, having pared earlier gains.
The contact had climbed to its highest since late July at $6.97 on Wednesday as expectations grew that drought and frosts would have a significant impact on wheat in top exporter Russia.
Overnight drone attacks by Ukraine, meanwhile, set fire to an oil refinery at the Russian Black Sea port of Tuapse while Russian-occupied Crimea was also targetted, Russian officials said on Friday.
"Wheat prices have continued their back-and-forth trade," commodity data platform CM Navigator said in a note.
"The volatility in wheat prices has been elevated recently, which is not surprising given the frequent reports of (Russian) crop size reductions, compounded by the ongoing war risk."
Russia's agriculture ministry said on Thursday that crops on about 1% of the country's total area had been killed by frosts this month.
While some rain is forecast for parched southern Russia this week, traders say more moisture will be needed during a crucial growth period for crops.
However, in the top US winter wheat state of Kansas,scouts on an annual tour of the state's wheat fields projected better-than-average yields.
CBOT soybeans added 0.7% to $12.24-3/4 a bushel, while corn was unchanged on the day at $4.57 a bushel.
The harvesting of soybeans, corn and rice in Brazil's flood-devastated Rio Grande do Sul advanced slowly in the last week as relentless rains and stubbornly high waters failed to subside.
Sluggish demand was capping Chicago grain prices.
US soybean crush plunged in April to a seven-month low, missing all trade estimates, according to National Oilseed Processors Association data.
The US Department of Agriculture on Thursday reported weekly export sales of new-crop US wheat and old-crop US corn near the low end of trade expectations, while old-crop US soybeans sales fell below trade expectations.