Wheat jumps on Black Sea disruptions, corn eases
SINGAPORE: Chicago wheat rose almost 1% on Monday , recovering from a multi-week low as a lack of progress in restoring Black Sea supplies disrupted by the Russia-Ukraine war supported prices. Corn fell on pressure from large US inventories, while soybeans edged higher. Both commodities are likely to face headwinds from the ongoing US harvest. “There were some hopes of Black Sea exports resuming…
Chicago wheat soared nearly 1% on Monday, bouncing back from a multi-week low as the absence of progress in reopening Black Sea ports, affected by the Russia-Ukraine conflict, kept prices high. Corn prices slipped due to the abundance of US inventories, while soybeans edged upwards. Both grains are expected to encounter obstacles from the ongoing US harvest.
A trader in Singapore expressed disappointment that Black Sea exports, which had shown promise of resuming, have not materialized, with cargoes still stuck at sea. The most-traded wheat contract on the Chicago Board of Trade (CBOT) climbed 0.9% to $6.89 per bushel as of 0118 GMT. However, the market had recently plummeted to its lowest level since mid-August last week.
Corn dropped 0.2% to $4.97-1/4 per bushel, while soybeans gained 0.2% to $12.80-1/4 per bushel. Corn prices were hovering near a five-week low, while soybeans were close to last week's low. Diplomatic efforts to restore regular shipping through the Black Sea have faltered, with Russian President Vladimir Putin dismissing recent truce proposals on Thursday.
Grain consultancy Sovecon has revised its forecast for Russia's 2026/27 grain exports down to 44.7 million metric tons, from the previously estimated 49.4 million tons, cautioning that the Azov and Black Sea ports will remain closed till 2027. The magnitude of this year's US corn and soybean harvests remains uncertain as traders await the US Department of Agriculture’s production and World Agricultural Supply and Demand Estimates reports.
StoneX, a commodity brokerage, recently cut its prediction for the average US 2026 corn yield to 182.1 bushels per acre (bpa) from 182.9 bushels in its previous report on September 8. For soybeans, StoneX increased its US 2026 yield forecast to 54.1 bpa from 53.0 bpa in its September estimate. The corn market is feeling the strain after the USDA revealed last week that US farmers and grain handlers had 35% more corn in storage on September 1 compared to the previous year.
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