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U.S. wheat falls on Russian corridor, corn also lower

U.S. wheat futures fell on Wednesday following reports that Russia was ready to provide humanitarian corridors for food shipments, while corn hovered near a six-week low as U.S. planting picked up and China allowed Brazilian corn imports.

Soybeans edged lower.

The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was down 2.8% at $11.22 a bushel by 1023 GMT.

Russia is ready to set up a humanitarian corridor for vessels carrying food to leave Ukraine in return for the lifting of some sanctions, the Interfax news agency cited Russian Deputy Foreign Minister Andrei Rudenko as saying on Wednesday.

The news sent wheat prices tumbling, with Paris-based milling wheat futures down 2.6% at the open before paring some losses.

Ukraine’s Black Sea ports have been blocked since Russia sent thousands of troops into Ukraine on Feb. 24 and more than 20 million tonnes of grain are stuck in silos in the country.

Wheat was also pressured by analyst APK-Inform’s increased forecasts for Ukraine’s 2022/23 crop and exports because of a better-than-expected winter harvest.

In corn, China’s customs authority signed an agreement with Brazil to allow imports of Brazilian corn, posing a possible threat to U.S. exports.

“The agreement on sanitary guidelines for corn exports will guarantee access to Brazilian grain, a move that could threaten the U.S. dominance in the Chinese corn market,” The Hightower Report said in a research note.

The U.S. Department of Agriculture (USDA) said on Monday that 72% of the U.S. corn crop had been seeded, as of May 22, near the high end of expectations and up from 49% in the prior week.

Corn Cv1 eased 1.2% to $7.62-1/4 a bushel after falling 1.8% on Tuesday while soybeans Sv1 edged 0.4% lower to $16.86-1/4 a bushel.

Soybean planting was 50% complete by Sunday, the USDA said, up from 30% a week earlier. The figure was ahead of the average analyst estimate of 49%, but behind the five-year average of 55%.
Source: Reuters (Reporting by Rajendra Jadhav; Editing by Rashmi Aich, Subhranshu Sahu and Louise Heavens)

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