Russia-Ukraine Conflict Disrupts Global Grain Markets Amid Profit-Taking
Chicago wheat futures plummeted on Wednesday due to profit-taking following a 'steady rise in prices' amid diplomatic efforts to end Russia's conflict with Ukraine and alleviate disruptions to Black Sea exports. According to analysts, profit-taking was a significant factor behind the decline.
The price of corn and soybeans also eased, with attention now shifting to the U.S. Department of Agriculture (USDA) forecasts for Friday, which will provide a gauge of damage caused by weather in the Midwest. As of 9:45 am (1445 GMT), the most-traded contract for wheat on the Chicago Board of Trade had fallen 7-1/2 cents, to $7.39-1/4 a bushel, still below last week's 3-1/2 year high of $7.95.
The market initially reacted positively to news of an Ukrainian strike against the Russian port of Novorossiysk, which brought attention back to the war disruption of Black Sea trade. However, Russia's comments that it hopes U.S.-mediated talks will resume shortly and Abu Dhabi is a preferred location for such talks have refocused diplomatic efforts.
CBOT Corn fell by 1-1/2 cents, to $5.32 per bushel, while soybeans dropped 4-1/2 cents, to $13.11-1-1/2 a Bushel, both still above their highest levels in three years due to concerns over U.S. crop yields and Black Sea disruptions.