Wheat traded in Chicago almost erased gains made earlier this week as ample supplies from big shippers offset concerns about how Ukraine, a major exporter, can ship its crop.
(Bloomberg) — Wheat traded in Chicago almost erased gains made earlier this week as ample supplies from big shippers offset concerns about how Ukraine, a major exporter, can ship its crop.Â
Prices are up only about 0.6% for the week, relinquishing most of the 8.6% jump on Monday after Russia attacked port infrastructure in the Odesa region and a port on the Danube river. Last week Russia pulled out of the agreement allowing Ukrainian crop exports through the Black Sea.
In the US, a crop tour in North Dakota showed that the spring wheat yield is above the USDA’s latest estimate, while France’s soft wheat production is expected to be higher than last year. While Russia’s actions are likely to further restrict exports from Ukraine, Russia itself is shipping huge volumes to world markets. The country could export as much as 60 million tons of grain in the new season, according to Russian Grain Union President Arkady Zlochevsky.
President Vladimir Putin defended Russia’s withdrawal from the Black Sea deal at a summit with African leaders on Thursday, and said Russia is ready to send 25,000 to 50,000 tons of grain for free to each of Burkina Faso, Zimbabwe, Mali, Somalia, Central African Republic and Eritrea in the next three-to-four months.Â
Read more: Ukraine Counterpunch and Grain Strikes Push War Into New Phase
Corn futures fell for a fourth day from the strongest close in about a month earlier in the week as immediate concerns over the impact of the Russian attacks eased. About half of the 33 million tons of crops shipped under the Black Sea deal consisted of corn, with top buyer China taking a large portion. China has shifted in recent months to cover more of its requirements from Brazil, which has a record crop.
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