Wheat slips on easing concerns over Black Sea supplies

South Asian Media Network

Karachi, Aug. 22 -- US wheatfutures slid 1.5 per cent on Monday, giving back some of the strong gains made in the previous two sessions, as fears of potential supply disruptions from the Black Sea region eased.

New-crop corn and soybeans dipped were little changed as traders awaited results from an annual US crop tour.

Tensions between Russia and Ukraine influence the grainmarkets because the countries are major exporters of wheat and corn. Their conflict was viewed as less heated following talks among Russia, Germany, France and Ukraine on Sunday.

"We went home Friday thinking the Ukrainians and Russians would be at each other's throats today," said Jim Gerlach, president of A/C Trading. "It looks like they de-escalated a bit over the weekend."

Russia said all objections to it sending a humanitarian convoy to Ukraine had been resolved, but no progress was made toward a ceasefire between government and rebel forces in the east of the country.

Chicago Board of Trade December wheat lost 1.5 per cent to $5.55 a bushel by 10:10 a.m. CDT (1510 GMT), after climbing more than 4 per cent in the previous two sessions.

December corn dropped 0.6 per cent to $3.74-3/4 a bushel after rising on Friday to a nearly one-month high of $3.79-3/4 a bushel. November soybeans slipped 0.1 per cent to $10.51-1/2 a bushel.

US rains reduced concerns about dry crops areas, weighing on the corn and soy markets, Gerlach said.

A private US crop tour this week is expected to find corn and soy yields are higher than the US Department of Agriculture estimated in a crop report last week. About 130 crop scouts will participate in the Pro Farmer Midwest Crop Tour, which began surveying fields on Monday.

Expectations for record-large harvests should pressure prices, after corn futures last week posted their biggest weekly gain in five months.

"Ultimately this little bounce we had it going to fizzle out," Gerlach said

Published by HT Syndication with permission from South Asian Media Network. For any query with respect to this article or any other content requirement, please contact Editor at htsyndication@hindustantimes.com

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