Thursday saw the first drop in Chicago wheat prices in five sessions. At the same time, losses were limited by supply concerns from Russia after global grain trader Cargill announced it would no longer handle the nation’s grain at its export terminal.
Corn strengthened while soybeans dipped a bit. At 04:26 GMT, the most active wheat contract on the Chicago Stock Exchange was down 0.1% at $7.04 a bushel. Corn rose a quarter of a cent to $6.50-3/4 a bushel, while soybeans lost a half cent to $14.76-3/4.
Cargill Inc. will no longer handle the main wheat supplier’s grain at its export terminal starting in July. However, the company announced on Wednesday that its shipping business would continue to transport grain from Russian ports.
If Moscow were to suggest a temporary suspension of wheat and sunflower shipments, as Russian trade newspaper Vedomosti reported last week, Russian exports could also be hampered.
According to sources who spoke to Reuters afterwards, Russia has no intention of stopping wheat exports. Still, he wants exporters to ensure that the prices paid to farmers are high enough to cover typical production costs.
But according to Agriculture Ministry data released on Wednesday, Ukraine’s grain exports rose to 5.1 million tons so far in March from 1.4 million tons in March 2022. Following the destruction of its fields from the worst drought in a century and nearly halving their yields by 2023, analysts forecast Brazil will provide up to half the soybeans Argentina will buy. Commodity funds were net sellers of soybean meal on Wednesday and net purchases of CBOT corn, soybeans, wheat and soybean oil futures contracts, traders said.
Wheat prices in the EU rise as a result of Cargill’s decision to reduce its exports to Russia
The price of European wheat rose to almost a two-week high on Wednesday after US grain trader Cargill announced it would stop exporting wheat to Russia, the world’s biggest grain exporter, amid concerns about the impact of weather. dry in American Winter Crops.
At Paris-based Euronext, the final contract for the 2022/2023 season for May milling wheat (BL2K3) peaked at 271.75 euros (equivalent to $287.13) per tonne, its most notable cost since March 16. Ultimately, the contract ended 0.7% higher at 265.25 euros.
Although its shipping unit will continue to transport grain from Russian ports, Cargill is moving further away from the Russian market as it aims to stop processing Russian grain from its export terminal starting next season, the firm told Reuters.
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