Wheat Extends Loss From Five-Month High as Supply Outlook Weighs

Wheat fell for a third day from the highest close in five months as the outlook for ample near-term supplies outweighed concerns over the impact of Russian attacks on Ukrainian port facilities.

(Bloomberg) — Wheat fell for a third day from the highest close in five months as the outlook for ample near-term supplies outweighed concerns over the impact of Russian attacks on Ukrainian port facilities.

Prices of the food staple are now only up about 1% for the week, relinquishing most of the 8.6% jump on Monday. Russia has attacked port infrastructure in the Odesa region and a port on the Danube river since pulling out of the agreement allowing Ukrainian crop exports through the Black Sea on July 17.

While the Russian 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, citing another record crop.

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 Burkina Faso, Zimbabwe, Mali, Somalia, Central African Republic and Eritrea in the next three to four months.

Read more: Ukraine Counterpunch and Grain Strikes Push War Into New Phase

Elsewhere, production of soft wheat in major supplier France is likely to rise more than 1 million tons to almost 35 million tons this year, according to Paris-based information and consultancy company Agritel. The country’s exports have been modest so far as Russian wheat has dominated the market, but uncertainty over Black Sea supplies may change that, it said.

Corn futures fell for a fourth day from the strongest close in about a month 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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