Black Sea Export Disruptions Weigh on Chicago Wheat Prices
Chicago wheat fell on Monday as traders weighed the potential impact of diplomatic efforts to ease disruptions to Black Sea grain exports from Russia and Ukraine.
The most-traded wheat contract on the Chicago Board of Trade (CBOT) dropped 0.3% to $7.04-1/2 a bushel by 0109 GMT, while CBOT corn fell 0.3% to $5.26-1/2 a bushel.
Renewed diplomatic efforts to end the Ukraine war kept attention on the outlook for Black Sea agricultural exports, with Ukrainian President Volodymyr Zelenskiy stating that India, Turkey, Egypt, and other Middle Eastern countries were participating in talks on unblocking shipping in the Black Sea.
Turkey has proposed measures to Moscow regarding the security of shipping, but no substantive negotiations have taken place yet. Traders are hopeful that a truce could lead to a recovery in cargo movements, which have been at a near standstill in the Black Sea due to heavy attacks on ships and port infrastructure by both sides.
Russia could quickly restart up to 80% of its grain terminal capacity in the Black Sea and Sea of Azov if diplomatic efforts result in a ceasefire, according to a Reuters analysis of industry data.