Chicago | Reuters — Chicago wheat, corn and soybean futures firmed on Friday after the U.S. Department of Agriculture (USDA) assessed global supply and demand, reflecting the impact that Russia’s invasion of Ukraine has had on Black Sea exports.
Grain prices remained underpinned by Russia’s six-week-old invasion, which has stalled large amounts of Ukrainian exports of wheat, corn and sunflower oil. Russia calls its actions in Ukraine a “special operation.”
Soybean and corn futures remain elevated, supported by reduced production in South America and questions of U.S. acreage decisions as planting nears.
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The most-active wheat contract on the Chicago Board of Trade (CBOT) gained 33 cents, to $10.58-1/4 per bushel, adding 7.49 per cent for the week, its biggest weekly gain since March 4.
CBOT soybeans added 43-1/2 cents to end at $16.89 per bushel, firming 6.7 per cent, its biggest weekly addition since July 2, 2021.
CBOT corn firmed 10-1/2 cents, to $7.60-3/4 a bushel, ending the week up 4.49 per cent, its biggest weekly increase since the week ended March 4.
Soybean futures climbed as USDA pegged U.S. ending stocks down 25 million bushels, to 260 million bushels, as South American exports lag, with Brazil’s exports falling 2.75 million tonnes, to 82.75 million tonnes.
The report does not reflect the increased soybean plantings the agency showed in last week’s planting intentions report, USDA said.
“We’re that strong in the beans because they haven’t put in the bigger acres. We’re that strong in the corn because people believe those acres are coming down,” said Mark Gold, managing partner at Top Third Ag Marketing.
Corn ending stocks remained unchanged from March at 1.44 billion bushels.
“The USDA probably surprised the trade when they left U.S. corn exports unchanged despite the Ukraine situation,” said Don Roose, president of U.S. Commodities.
Ukraine is expected to export 19 million tonnes of wheat this production year, down one million from USDA’s last assessment, while Russia is expected to increase wheat shipments by one million, to 33 million tonnes.
U.S. wheat ending stocks are set to increase by 25 million bushels, to 678 million bushels, as high CBOT futures price U.S. wheat out of the world market.
— Reporting for Reuters by Christopher Walljasper in Chicago; additional reporting by Gus Trompiz in Paris and Enrico Dela Cruz in Manila.
