Chicago | Reuters — Chicago Board of Trade corn futures set a six-week low on Friday while wheat hit its lowest level in more than four weeks on concern over competition for global export business, analysts said.
Technical selling helped fuel the sell-off, along with prospects for robust 2023 corn production in the U.S. and broader economic worries.
On the first anniversary of Russia’s invasion of major grains producer Ukraine, traders largely expect an extension of the Black Sea grain deal that facilitated the flow of Ukrainian crops to world buyers. Struck last year, the agreement has increased competition for suppliers of wheat and corn.
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Russian President Vladimir Putin spoke to Turkish counterpart Tayyip Erdogan about the deal on Friday.
“The flow of cheap wheat out of the Black Sea region has been stiff competition for corn,” said Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage in Iowa.
The most active CBOT corn contract closed 10 cents lower at $6.49-1/4 per bushel and hit its lowest price since Jan. 10 (all figures US$). Wheat settled down 28-3/4-cents at $7.21-3/4 per bushel and hit its lowest price since Jan. 23.
Compared with the day before Russia’s invasion last year, wheat futures are down about 18% and corn futures are down about five per cent.
Ukrainian President Volodymyr Zelenskiy on Friday welcomed some elements of a Chinese proposal for a ceasefire but said only the country where a war is being fought should be the initiator of a peace plan.
In Paris, Euronext wheat fell to a one-month low under pressure from export competition from Russia and expectations the shipping corridor from Ukraine will continue.
CBOT soybeans also eased, with the most active contract down eight cents at $15.19-1/4. The contract hit its lowest price since Feb. 15.
The United States faces competition for soybean export sales from cheaper supplies in Brazil, while traders have largely dialed in crop losses in drought-hit Argentina, analysts said.
— Reporting for Reuters by Tom Polansek in Chicago; additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.
