CHICAGO: US wheat and corn futures jumped on Monday, with traders saying that exports from the Black Sea region will continue to be disrupted this week due to the fighting in Ukraine.
Soyabean futures also rose sharply, following gains in the crude oil market that also stemmed from major ructions to energy shipments related to the Russia-Ukraine conflict.
The benchmark Chicago Board of Trade May soft red winter wheat contract notched the biggest gain, surging 7.6% and briefly touching its daily trading limit of 85 cents a bushel.
Traders also noted buying by investment funds after all three commodities notched losses last week. The losses in corn snapped a streak of five straight weekly gains.
“Money rotated out of the ag commodities at times last week as chatter of peace talk progress raised the prospect of a resolution,” Arlan Suderman, chief commodities economist at brokerage StoneX, said in a note to clients. “But Wall Street is more skeptical of a peace agreement today, giving it reason to reinstate risk premium into both the energy and the ag markets.”
At 11 a.m. CDT (1600 GMT) CBOT May wheat was up 82-1/4 cents at $11.46 a bushel. The World Food Programme said food supply chains in Ukraine were collapsing, with infrastructure destroyed.
CBOT May corn was up 18-3/4 cents at $7.60-1/2 a bushel and CBOT May soyabeans gained 31-1/2 cents to $16.99-1/2 a bushel.
The US Agriculture Department said on Monday that weekly export inspections of corn totaled 1.466 million tonnes, up 28% from a week earlier. Analysts’ forecasts for the weekly total ranged from 1.14 million to 1.6 million.
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