Mexico City | Reuters — Chicago grain and soy futures closed nearly flat or higher on Tuesday as traders assessed the impact of several countries banning Ukrainian grain, and the future of a Black Sea grains deal remained in doubt.
Markets were also eying expected rains in the U.S. that would likely slow planting schedules.
Poland agreed to lift a ban on the transit of Ukrainian grain and food products, but Ukraine said a wartime deal allowing it to safely ship grain from Black Sea ports was still under threat.
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In Romania, however, the ruling Social Democrat Party (PSD) said it will ask the coalition government to approve a temporary ban on Ukrainian grain imports, as more eastern European Union countries express concern about an influx of cheaper grain.
“In general, it’s been pretty volatile. A lot of this has been headline trading around the Black Sea region, as traders are trying to assess it,” said Terry Reilly, a senior analyst at Futures International.
Russia’s foreign minister is expected to discuss the Black Sea grain deal with United Nations Secretary-General Antonio Guterres during a visit to New York next week, a Russian official said.
The most-active wheat contract on the Chicago Board of Trade (CBOT) settled up 1-1/2 cents at $6.98 per bushel, after earlier hitting a session high not seen since March 29.
CBOT soybeans settled 2-1/4 cents higher at $15.19-1/4 per bushel, and corn settled one cent higher at $6.77-1/2 per bushel.
The Russia-focused agricultural consultancy Sovecon raised its 2022-23 Russian wheat export forecast by 0.4 million tonnes, to 44.5 million tonnes.
Rain was in the forecast for the U.S. Midwest for the rest of the week, prompting concerns about delays to planting for corn and soy, analysts said.
— Reporting for Reuters by Cassandra Garrison in Mexico City, Gus Trompiz in Paris and Naveen Thukral in Singapore.
