Grains ease with Ukraine exports, economy in focus
Chicago wheat, corn and soybean futures edged lower on Friday, curbed by news of further grain shipments from war-torn Ukraine and investor caution over the economy ahead of U.S. jobs data.
Mixed weather for U.S. crops and signs of renewed import demand this week helped limit losses, traders said. GRA/TEND
Financial markets were subdued as participants awaited July U.S. jobs figures amid persisting worries over an economic downturn. MKTS/GLOB
The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was down 0.48% at $7.78-3/4 a bushel by 1202 GMT. CBOT corn Cv1 was down 0.08% at $6.05-3/4 a bushel, while soybeans Sv1 inched down 0.08% to $14.17-1/2 a bushel.
Three ships carrying a total of 58,041 tonnes of corn have been authorised to leave Ukrainian ports on Friday as part of a deal to unblock grain exports, the organisation arranging the operation said on Thursday.
A first vessel carrying Ukrainian grain set sail from Odesa on Monday, while a vessel bound for Ukraine was being inspected on Friday in Turkey under a safe-passage agreement aimed at easing food supply tensions caused by Russia’s invasion of Ukraine.
The resumption of Ukrainian maritime trade has weighed on grain price this week, with Chicago wheat hitting a six-month low, although brisk international wheat demand and chatter of Chinese interest in U.S. soybeans has lent some support.
“Wheat prices are cheap, given the current tight supply situation, and we see strong demand coming from key importers,” said one Singapore-based trader.
Source: Reuters (Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore Editing by Subhranshu Sahu and Mark Potter)