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Wheat climbs on Black Sea hot waters, soybean backed up by dry weather in South America
14 February 2022, 14:58
Chicago wheat futures climbed nearly 2% on Monday, Feb. 14, as concerns over supplies from top exporting Black Sea region supported prices, Reuters reports.
The most-active wheat contract on the Chicago Board of Trade (CBOT) added 1.9% to USD 8.13 a bushel, as of 0340 GMT, after climbing to its highest since Jan. 26 at USD 8.14 a bushel earlier in the session.
Learn more: TOP 14 Wheat Exporters From Ukraine in 10M 2021
Wheat futures are gaining ground on increased concerns that Russia may invade Ukraine and disrupt grain shipments from the Black Sea region, a key area for exports. Washington urged all U.S. citizens to leave the country within 48 hours.
Learn more: What if War Starts Tomorrow. Agriproducers, Port Operators and Traders on High Alert in Ukraine
Soybeans rose for a second straight session, with prices underpinned by concerns over dry weather curbing production in key South American suppliers.
Soybeans rose 0.4% to 15.89-1/2 a bushel and corn added 0.8% to USD 6.56 a bushel.
Safras & Mercado, an agribusiness consultancy, became the latest private forecaster in Brazil to cut its 2021/2022 soybean crop estimate due to dry weather. The firm pegged the harvest at 127.1 mln t, down 5 mln t from January.
A run of U.S. soybean export sales to China is contributing to the strength in prices.
Exporters reported sales of 108,000 t of U.S. soybeans for delivery to China; 30,000 t of U.S. soyoil to unknown destinations; and 128,000 t of U.S. corn to Japan, the U.S. Department of Agriculture said.
Paraguay’s soybean harvest could fall by as much as 50% to some 5 mln t in what would be its lowest level in the last decade due to a drought affecting the region, Paraguay’s Agriculture and Livestock minister, Santiago Bertoni, told Reuters on Friday.
Previously reported that Conab cut its forecast for soybean production in Brazil by 15 mln t.
Wheat export from Ukraine as of Feb. 9 was 32% up YoY, at 17.34 mln t.
