Mexico City | Reuters — Chicago grain futures closed flat or lower on Tuesday, with wheat hitting a 21-month low, as markets were weighed down by a dip in stocks and crude oil and clear forecasts for U.S. planting weather, traders said.
Corn closed slightly up as the market weighed increasing export competition from Brazil, better weather for U.S. spring plantings and uncertainty over the continuation of an agreement allowing Black Sea exports from Ukraine.
Soybeans were also pressured down by news that Brazil was shipping soy to the U.S.
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“Historically, we’re still in high price levels for a lot of these markets, and if we don’t have bullish news during planting and growing seasons, then we’ll be lower,” said Craig Turner of Daniels Trading.
The most-active wheat contract on the Chicago Board of Trade (CBOT) closed four cents lower to settle at $6.53 a bushel, after hitting its lowest since July 2021 at $6.42-1/2 (all figures US$).
Rains expected for parched areas growing U.S. wheat also pressured prices.
CBOT corn settled up 1/4 cent at $6.07-3/4 a bushel and soybeans closed down 18-1/2 cents at $14.17-1/2 a bushel.
Russian Foreign Minister Sergei Lavrov said the situation related to the Black Sea grain deal had reached a deadlock, adding there were still obstacles blocking Russian exports.
Meanwhile, a Ukrainian official said a U.N. proposal on improving and extending the deal can succeed only if the international community collectively pressures Russia.
Russia is expected to harvest a large wheat crop this year, though well below a record volume in 2022, while in the European Union crop conditions remain favourable apart from in drought-hit Spain and northern Italy.
— Reporting by Cassandra Garrison in Mexico City, Gus Trompiz in Paris and Naveen Thukral in Singapore.
