Wheat futures in Chicago reduced their gains at the close on Tuesday after rising to a five-month high earlier in the session, following Russian attacks on Ukrainian ports that raised concerns about long-term global supply. Wheat market gains diminished, and prices even fell at some points during the session, as traders awaited further developments in the Black Sea.
On the other hand, corn and soybean futures fell due to technical selling and expectations that the hot weather in the U.S. Midwest may not last long. The September wheat contract on the Chicago Board of Trade rose by 2.75 cents, settling at $7.60 and a quarter cents per bushel, down from a spike of $7.77 and a quarter cents per bushel, the highest level for the contract since February 21. The December corn contract finished down three cents at $5.65 and a quarter cents per bushel, while the November soybean contract fell four and a half cents per bushel, settling at $14.20 per bushel.
Wheat prices on the Chicago Board of Trade had risen to the daily limit of 60 cents on Monday after Russia destroyed Ukrainian grain storage facilities on the Danube River with a drone strike, targeting a vital export route for Kyiv in an expanded aerial campaign launched by Moscow last week after its withdrawal from the Black Sea grain agreement. However, the market retreated from its five-month high on Tuesday as Russia appeared to slow the pace of its attacks on Ukrainian ports. UN Secretary-General António Guterres urged Russia to return to the agreement, warning of devastating effects on "vulnerable countries struggling to feed their people." The International Monetary Fund estimated that Russia’s exit from the grain agreement might lead to a 10 to 15 percent rise in global grain prices, but it stated it continues to evaluate the situation. Meanwhile, the European Union’s crop monitoring service lowered its crop production forecasts for the year in the bloc, including grains and oilseeds, citing adverse weather conditions.
