Wheat and corn fall as more grain ships leave Ukraine
Summary:
- More Ukrainian ships sailing with grain
- Better Midwest weather weakens corn and soy prices
- Hopes for Chinese demand limits soybean decline
Chicago wheat and corn prices fell on Monday after reports of more ships sailing from Ukraine to bring grain exports into global markets.
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Welcome rain and lower temperatures forecast in the US Midwest also weakened corn and soybeans.
The Chicago Board of Trade's most active wheat contract Wv1 fell 1.4% to $7.64-1/4 a bushel by 1112 GMT. Corn Cv1 fell 1.1% to $6.03 a bushel and soybeans Sv1 were down 0.09% to $14.07-1/2 a bushel.
Two more ships carrying corn and soybeans departed from Ukrainian ports on Monday, taking the total to 10 since the first ship sailed last week under a deal with Russia to unblock Ukrainian sea-borne grain exports.
The hopes are that world markets could receive significant new Ukrainian supplies.
"Wheat and corn are falling today as ever more ships sail from Ukraine," said StoneX commodity risk manager Matt Ammermann. "The question now is if and how fast we will see high-volume grain exports developing from Ukraine."
Ammermann says the market does not yet have full confidence in the safe-shipping corridor, but developments in recent days suggest the situation might improve more rapidly than previously expected.
Corn and soybeans are being weakened by more rainy, cool weather in the US Midwest, which has removed some of the fear about crop stress debated last week.
"But soybeans are also supported by expectations the US climate change, healthcare and tax bill will raise demand for soyoil," Ammermann said.
"With Brazilian soybeans selling out, Chinese demand for soybeans is also expected to be transferred to the United States from the second half of September."
