Wheat companies for the second session on Black Sea supply issues; corn relieves

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SINGAPORE — Chicago wheat futures gained ground on Thursday as a slowdown in exports from the Black Sea region amid the Russia-Ukraine war sparked global supply concerns.

Corn fell slightly, while soybeans rose.

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FUNDAMENTALS

* The most active wheat contract on the Chicago Board of Trade (CBOT) rose 0.1% to $8.41 a bushel, at 0010 GMT.

* Corn lost 0.1% to $6.84-1/2 a bushel and soybeans added 0.1% to $13.83-1/4 a bushel.

* Concerns over Ukraine’s grain exports grew as data from the country’s agriculture ministry showed shipments slowed in the past 10 days, with volumes so far this month of 9 % behind compared to the same period last year.

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* Ukraine said on Sunday that Russia was blocking full implementation of a Black Sea grain export deal, forcing Ukrainian ports to operate at 25% to 30% capacity.

* The deal, brokered by the United Nations and Turkey in July, paved the way for Ukraine to resume grain exports from Black Sea ports that had been closed since the Russian invasion in February.

* United Nations aid chief Martin Griffiths said on Wednesday he was « relatively optimistic » that a UN-brokered deal that allowed for a resumption of Ukrainian Black Sea grain exports would be extended to the beyond mid-November.

* Griffiths traveled to Moscow with senior UN trade official Rebeca Grynspan earlier this month for talks with Russian officials on the deal, which also aims to facilitate grain and fertilizer exports Russians to world markets.

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* Argentina’s 2022/23 wheat harvest will amount to 13.7 million tonnes, the Rosario grain exchange said on Wednesday, down sharply from its previous forecast of 15 million tonnes amid prolonged drought that has hit the country’s farmers.

* Commodity funds were net sellers of CBOT corn and soybean meal futures on Wednesday and net buyers of wheat and soybean oil futures, traders said. Bottoms were considered sharp even in soybeans.

MARKET NEWS

* U.S. stocks were mixed and global equities eased from a five-week high on Wednesday as the falling dollar boosted commodities and put pressure on Treasury yields.

DATA/EVENTS (GMT) 1215 EU ECB Refinance Rate Oct 1215 EU ECB Deposit Rate Oct 1230 US Durable Goods Sept Thukral; edited by Rashmi Aich)