US grain futures dropped on Monday in profit-taking after concerns eased about political upheaval in Ukraine affecting grain shipments. Wheat pulled back after the May contract on Friday rose 2 percent over Ukraine, the world's third largest corn exporter and a major wheat exporter. Crimeans voted overwhelmingly to break away from Ukraine and join Russia in a referendum on Sunday that alarmed the former Soviet republic.
"An absence of fresh unrest in the Black Sea Region has the marketplace thinking that perhaps we got a bit too excited about Crimea," said Kayla Burkhart, broker for SunPrairie Grain. "Grain markets have started 'selling the fact' after 'buying the rumor' last week on thoughts prices would be higher after the vote," she said. Chicago Board of Trade May wheat fell 12-3/4 cents to $6.74-1/2 a bushel. May corn slid 7 cents to $4.79 a bushel.
Ukraine could lose about 11 million tonnes of grain in the 2014 harvest due to a sharp decrease in sowing area caused by a shortage of money, analyst UCAB said on Monday. Up to 20 percent of Ukrainian arable land might not be sown this year, mainly because of "the absence of any financing in connection with the difficult economic and political situation". Port activity has continued normally, however, and farmers have started spring sowings, analysts said.
"Tensions in the Ukraine are easing for the moment at least," said Sterling Smith, futures specialist for Citi. "Expect weakness as long as there are no issues from the Crimea." Private exporters reported the sale of 107,400 tonnes of US corn to Mexico for delivery in the marketing year that ends on August 31, according to the US Department of Agriculture. They struck deals to sell 110,000 tonnes of US syameal to unknown destinations for delivery in the marketing year that starts on October 1.
On Tuesday, traders will wait for the results of a wheat tender from Egypt's main wheat-buying agency, the General Authority for Supply Commodities. May syabeans rose 3-1/4 cents to $13.91-3/4 a bushel in a rebound from recent losses and amid some concerns about a grounded ship temporarily slowing sya exports from Argentina, traders said. A syabean cargo ship that ran aground nine days ago in Argentina's main grains hub of Rosario has slowed exports longer than expected while port workers threaten to go on strike later this month if hefty wage demands are not met.