Wheat falls on supply pressure, soybeans recover from one-month low

Chicago wheat fell on Monday as ample supplies pressured prices, with worry receding that intensified conflict between Russia and Ukraine could threaten Black Sea export shipments.

Soybeans rose on buying interest after hitting contract lows last week. Corn fell on spillover weakness from wheat and favourable South American weather forecasts.

Chicago Board of Trade most-active wheat Wv1 was down 1.2% at $5.57-1/2 a bushel at 1135 GMT, while corn Cv1 fell 0.2% to $4.34 a bushel. Soybeans Sv1 rose 0.6% to $9.89-1/2 a bushel after dropping to their lowest since Oct. 21 on Friday.

Russia last week launched a hypersonic intermediate-range ballistic missile at Ukraine in response to the U.S. and UK allowing Kyiv to strike Russian territory with Western weapons.

The strike raised worries over grain supplies from the Black Sea region.

“Overall, the fighting in Ukraine does not seem to have intensified outside normal levels and wheat export shipments from both Russia and Ukraine are continuing normally at high volumes,” a German trader said.

“Russian wheat continues to be offered in world markets at aggressively low prices with 11.5% Russian at around $220 a ton FOB and 12.5% around $228-$230, while demand is also very thin with few purchase tenders in the market.”

Despite expectations of a slowdown, Russian wheat exports so far in November are running at more than 1 million tons a week, he said.

A Singapore-based trader added: “The wheat market has been supported by escalations in the Black Sea region, but it has come down now as there is no major issue with supplies.”

Corn was pressured by forecasts of crop-friendly rain in South America.

Soybeans again saw purchase interest after touching contract lows on Thursday amid favourable South American weather and Brazil-China food trade agreements which could transfer Chinese sales away from the U.S.
Source: Reuters (Reporting by Michael Hogan in Hamburg and Naveen Thukral in Singapore; Editing by Rashmi Aich and Jan Harvey)