Band Mark Weinraub
CHICAGO, July 15 (Reuters) – Chicago Board of Trade wheat futures fell to their lowest level in five months on Friday as hopes of a recovery in exports from war-torn Ukraine threatened recent gains in demand for supplies US, traders said. Corn futures firmed again, its seventh gain in the last eight sessions, on concerns about hot weather stressing American culture as it pollinates.
Soy recorded modest gains, also supported by weather concerns, but the gains were limited because the culture was not in a critical phase of development.
Chicago Board of Trade Soft Red Winter Wheat Benchmark September Contract WU2tear down12.9% this week, biggest weekly percentage loss for the most active contract Wv1 since March 2011.
“The strong dollar, crop pressure and ideas of progress on a corridor allowing Ukraine to ship grain continue to weigh on the market,” brokerage firm FuturesOne said in a research note.
Russia, Ukraine, Turkey and the United Nations are due to sign an agreement next week to resume Black Sea grain exports from Ukraine, which have been severely hampered by the war.
CBOT Soft Red Winter Wheat September ended down 18-1/4 cents at $7.76-3/4 a bushel, its fifth consecutive losing session. Prices hit a low of $7.65-3/4, the lowest for the most active contract since Feb. 11.
Disruption to Black Sea shipping routes caused by Russia’s invasion of Ukraine sparked a rally that pushed wheat futures to record highs in early March. Prices returned to prewar levels, but were still about $1 higher than they were a year ago.
December Corn CBOT CZ2 was up 2-3/4 cents at $6.03-3/4 a bushel and November CBOT soybeans SX2 were 1-1/4 cents higher at $13.42-1/4 a bushel.
“The combination of hot and dry weather will increase stress on corn and soybeans,” Kyle Tapley, meteorologist at space technology company Maxar, wrote in a client note.
(Additional reporting by Naveen Thukral in Singapore, Michael Hogan in Hamburg and Nigel Hunt in London; Editing by Marguerita Choy and Diane Craft)
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