Wheat eases from 2-week top on Black Sea supplies; soy, corn down

SINGAPORE (Reuters) – Chicago wheat futures slid on Tuesday, with the market falling from previous session’s highest level in two weeks, as grain shipments continue to flow from Ukraine despite Russia withdrawing from a U.N.-brokered export pact.

Soybeans and corn lost ground after closing higher on Monday with a rapid pace of U.S. harvest weighing on prices.

FUNDAMENTALS

* The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 0.9% at $8.74-3/4 a bushel, as of 0019 GMT. Soybeans fell 0.2% to $14.17-1/4 a bushel and corn dropped 0.5% to $6.88-1/4 a bushel.

* Ukrainian President Volodymyr Zelenskiy said on Monday that his country would continue exporting grain from its Black Sea ports under a U.N. programme despite Russia’s pullout because the shipments offered stability to world food markets.

* Moscow suspended its participation in the Black Sea deal on Saturday in response to what it called a major Ukrainian drone attack on its fleet in Russia-annexed Crimea.

* Ships carrying grain sailed from Ukrainian ports on Monday, suggesting Moscow had stopped short of reimposing a blockade.

* But shipments could be interrupted again. Lloyd’s of London insurer Ascot is suspending writing cover for new shipments using the Ukrainian grains corridor in the Black Sea until it has more clarity about the situation there, a senior official said.

* Losses in the wheat market were curbed by dryness hitting the U.S. winter crop.

* The U.S. Department of Agriculture (USDA) on Monday rated 28% of the U.S. winter wheat crop in good-to-excellent condition, the lowest for this time of year in records dating to 1987, underscoring the effects of persistent drought in the Plains wheat belt.

* On the harvest front, the USDA said the U.S. soybean harvest was 88% complete, ahead of the five-year average of 78%. For corn, the harvest was 76% complete, ahead of the average analyst estimate of 75% and the five-year average of 64%.

* Commodity funds were net buyers of CBOT wheat, soybean, corn, soyoil and soymeal futures contracts on Monday, traders said.

MARKET NEWS

* A global stock index fell and U.S. Treasury yields edged up on Monday as investors prepared for the U.S. Federal Reserve to stick with its aggressive approach to raising interest rates this week. [MKTS/GLOB]

DATA/EVENTS (GMT)

0030 Japan JibunkBK Mfg PMI Final SA Oct

0145 China Caixin Mfg PMI Final Oct

0330 Australia RBA Cash Rate Nov

0700 UK Nationwide house price MM, YY Oct

0930 UK S&P GLBL/CIPS Mfg PMI Final Oct

1345 US S&P Global (NYSE:) Mfg PMI Final Oct

1400 US ISM Manufacturing PMI Oct

U.S. Federal Reserve’s Federal Open Market Committee

starts its two-day meeting on interest rates

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