SINGAPORE: Chicago wheat futures climbed to a one-week high on Thursday, continuing to recover from multi-month lows, after concerns over renewed tensions between Russia and Ukraine fuelled doubts on the future of a Black Sea export corridor.
Soybeans inched lower and corn was almost flat, with both markets facing pressure from US planting.
“The wheat market has reversed the downward trend as there are fresh tensions between Russia and Ukraine which are putting the Black Sea grain deal in doubt,” said one Singapore-based trader.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.4% at $6.42-1/2 a bushel, as of 0401 GMT, after climbing earlier in the session to its highest since April 26.
The market hit its lowest since April 2021 at $6.04 a bushel on Wednesday.
Corn was unchanged at $5.88-1/2 a bushel and soybeans lost 0.1% to $14.16 a bushel.
Russia accused Ukraine on Wednesday of attacking the Kremlin with drones overnight in a failed attempt to kill President Vladimir Putin.
EU 2022/23 soft wheat exports up
Later, Ukraine President Volodymyr Zelenskiy said Russia did not appear to be interested in extending the Black Sea grain deal, but that Kyiv was focused on looking for partners to fulfil the deal and was not looking for Russian interest.
However, Russia said on Wednesday it will keep talking to the United Nations about the future of the deal that allows the safe Black Sea export of Ukraine grain, but would not do anything to harm its own interests.
Egypt’s state grains buyer, the General Authority for Supply Commodities, bought 655,000 tonnes of wheat in an international tender on Tuesday with cheap Russian wheat dominating the business, traders said on Wednesday.
The total is believed to involve an estimated 535,000 tonnes sourced from Russia and 120,000 tonnes from Romania.
French consultancy Agritel raised its forecast for this year’s Ukrainian wheat crop to 16.34 million tonnes, from 15.04 million tonnes pegged in November, to take account of a higher-than-expected area to be harvested, it said on Wednesday.
Commodity funds were net buyers of CBOT corn, soybeans, wheat and soyoil futures contracts on Wednesday, traders said. Funds were net sellers of soymeal.
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