Losses are Limited as Wheat Declines from a Two-Week High
- May 8, 2023
- FMCG HORECA BUSINESS
On Monday, Chicago wheat prices fell for the first time in four sessions, although the decline was not as great as it may have been due to Ukraine's slowing grain shipments and the pending renewal of the Black Sea export agreement. Before the U.S. Department of Agriculture was scheduled to release its weekly planting progress report, corn and soybeans lost momentum.
The market is severely oversold, the weather prediction is rather negative, and Russia is still dissatisfied with how its agricultural exports are represented in the Black Sea grain agreement, according to a study from commodities research company Hightower. Following a session-high of $6.64 per bushel, the most active wheat contract on the Chicago Board of Trade (CBOT) lost 0.3% to $6.58 per bushel as of 0245 GMT.
Soybeans dipped 0.1% to $14.35-1/2 a bushel while corn dropped 0.2% to $5.95-1/4 a bushel. After the most recent discussions with a senior U.N. official on Saturday, Deputy Foreign Minister Sergei Vershinin was cited by the TASS news agency as stating that Russia is still not happy with how the problem of Russian agricultural exports as part of the Black Sea grain deal is being settled.
According to sources and statistics, the rate of exports from Ukraine under a U.N.-backed plan has slowed as worries rise about ships becoming trapped if a pact is not extended later this month. One of the important parties, Russia, has stated it will continue discussions despite Moscow's threat to leave on May 18. This has added to the uncertainty for merchants and shipping businesses seeking to make future plans.
The U.S. crop reports, which are due later on Monday, and the monthly U.S. crop output report, which is due on May 12, were anticipated by the agricultural markets. Large investors boosted their net short position in corn futures on the Chicago Board of Trade in the week ending May 2, according to regulatory data issued on Friday.
In addition, the weekly commitments of traders report from the Commodity Futures Trading Commission revealed that non-commercial traders, which includes hedge funds, boosted their net short position in CBOT wheat and decreased their net long position in soybeans.