SINGAPORE: Chicago wheat futures edged lower on Wednesday, shedding some of previous session’s strong gains, although losses were curbed by worries over supplies amid an escalating conflict between Russia and Ukraine. Corn and soybeans lost ground.

“There is some support from fears that Russia/Ukraine war disrupts exports from the Black Sea, and also concerned with Russia’s threats to use nuclear weapons,” according to a Hightower report. “This support may be short-lived.”

The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 0.2% at $8.70 a bushel, as of 0357 GMT. Corn lost 0.3% to $6.65-1/4 a bushel and soybean gave up 0.5% to $14.01-1/2 a bushel.

Traders are monitoring the conflict in Ukraine, which has disrupted grain exports from the Black Sea, after an ally of Russian President Vladimir Putin issued a stark new nuclear warning to Ukraine and the West.

Wheat steadies after slide, soybeans ease

Farms in regions controlled by the Ukrainian government have sown 622,000 hectares (about 1.54 million acres) to winter wheat for the 2023 harvest, or 16% of the expected area, the agriculture ministry said on Tuesday.

The ministry did not provide a forecast, although Agriculture Minister Mykola Solsky told Reuters last month that the area could fall to 3.8 million hectares from 4.6 million hectares last year because of Russia’s invasion.

The US Department of Agriculture (USDA) said late Monday the corn harvest was 12% complete, behind the five-year average of 14%.

The soybean harvest was 8% complete, lagging the five-year average of 13%.

Traders await the USDA’s quarterly US grain stocks report on Friday, which has a history of jolting futures markets. Commodity funds were net buyers of CBOT wheat and corn futures contracts on Tuesday and net sellers of soybeans, soymeal and soyoil futures, traders said.