CEREALS-Wheat drops from a 2-week low, Black Sea supplies limit gains

By Naveen Thukral and Sybille de La Hamaide

SINGAPORE/PARIS, January 5 (Reuters)Chicago wheat futures edged higher on Thursday, rising for the first time in three sessions of bargain-priced buying, although ample supplies from the Black Sea region helped limit the price.

Soybeans and corn advanced, with both contracts recouping some of the previous session’s losses.

“An increase in exports from Russia and the rest of the Black Sea region is expected, which is increasing pressure on prices,” said a Singapore-based trader.

Soy Sv1 rose 0.1% to $14.84 1/2 a bushel and corn CV1 rose 0.6% to $6.56 a bushel.

The abundant supply of low-priced wheat from Russia and Ukraine competes fiercely with US exporters.

Wheat exports from Russia in January will remain high for this period of the July-June marketing season – nearly at least 3.6 million tonnes – after a huge grain harvest in 2022, analysts say.

Russia, the world’s largest wheat exporter, harvested a record grain harvest of 151.0 million tonnes after drying and cleaning, including 102.7 million tonnes of wheat, according to preliminary official data for 2022.

Ukraine’s efforts to to augment Exports under the Black Sea grains deal with Russia are currently aimed at ensuring faster vessel inspections rather than including more ports in the initiative, a senior Ukrainian official said on Wednesday.

Further pressure is exerted on the prices of agricultural products worries about economic headwindsincluding the impact of an increase in COVID-19 cases in China, analysts said.

In the American plains, winter wheat crop state ratings tear down in December in Kansas, but increased in Colorado and Oklahoma, the United States Department of Agriculture (USDA) announced on Tuesday.

For soybeans, Argentine farmers have so far sold 80.1% of the 2021/22 harvest, the country’s agriculture ministry said on Wednesday, down slightly from the 80.5% sold in the same period of the previous cycle.

The USDA said separately on Wednesday that the exporters had reached agreements to to sell 124,000 tons of US soybeans to unknown destinations.

Commodity funds were net sellers of CBOT futures on corn, wheat, soybeans, soybean oil and soybean meal on Wednesday, traders said. COMFUND/CBT

Price at 11:30 GMT



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Most active contracts – Wheat, corn and soybeans US cents/bushel, Paris futures in euros per tonne

(Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips, Uttaresh.V and Frances Kerry)

((naveen.thukral@thomsonreuters.com; +65-6870-3829;))

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