SINGAPORE: Chicago wheat lost more ground on Monday to trade near their lowest in five weeks as Turkey’s move to ban imports triggered worries over demand for Black Sea cargoes.
Corn inched higher after Friday’s losses, while soybeans dipped. “Turkey has ample domestic supplies,” said one Singapore-based grains trader. “Turkey’s decision will have direct impact on exports from the Black Sea region.”
The most-active wheat contract on the Chicago Board of Trade (CBOT) fell 0.4% to $6.24-3/4 a bushel, as of 0405 GMT, not far from Friday’s lowest since May 6 at $6.18 a bushel.
Corn added 0.5% to $4.51 a bushel, while soybeans gave up 0.1% to $11.78 a bushel.
Turkey will halt wheat imports from June 21 until at least Oct. 15 to protect farmers from price fluctuations, ensure domestic procurement of raw materials and create a favourable market for producers, the agriculture ministry said. Turkey is the world’s fifth largest wheat importer, buying mostly from Russia.
There was additional pressure on wheat stemming from expectations of a bumper US winter harvest, which have eased worries arising from Russian crop damage.
Analysts in a Reuters poll published on Thursday estimated the US Department of Agriculture’s June 12 crop production report will forecast a harvest of 1.298 billion bushels of winter wheat, above the May estimate.
Russia said on Friday it was declaring a federal emergency in 10 regions because of damage to crops from May frosts, a measure that will help farmers with extra funds but which officials said should not derail export obligations.
Favourable crop conditions in the United States, where farmers have made steady progress in planting corn and soybeans while starting winter wheat harvesting, were also weighing on prices.
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