Chicago | Reuters—Chicago wheat took a dive on Monday as traders monitored ongoing talks regarding the Russian war on Ukraine and with more favorable weather expected in some wheat-growing regions globally, according to analysts.
Soybeans and corn futures traded near flat, as traders anticipated the U.S. Department of Agriculture’s prospective planting report, due on March 31, and concerns remained that U.S. import tariffs will reduce demand for U.S. grains and oilseeds.
The strong trend in the dollar also weakened wheat and other products.
Read Also
Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
Chicago Board of Trade most-active wheat Wv1 settled down 10 cents at $5.48-1/4 a bushel, after earlier hitting its lowest point since March 7. Most-active soybeans Sv1 ended down 2-1/2 cents at $10.07-1/4 a bushel, while corn Cv1 rose 1/4 cent to finish at $4.64-1/2 per bushel.
Traders were monitoring talks between Washington and Moscow over Russia’s war on Ukraine, including the impact on Black Sea shipping, said Angie Setzer, partner at Consus Ag Consulting.
Progress in this area would be price-bearish as a ceasefire could create more security for Russian and Ukrainian export shipments.
Setzer said that more favorable weather in wheat-growing regions, including the Black Sea, weighed on futures, and showers were expected in parts of the still-dry U.S. wheat belt over next two weeks, according to weather forecasting firm Maxar.
Strength in the dollar weighed on grains, with the dollar jumping to multi-week highs against the euro and yen on Monday after data showed U.S. business activity picked up in March. The dollar had risen earlier against Japan’s currency on reports that U.S. President Donald Trump may be flexible with upcoming tariffs.
Traders are also watching tariff developments between the U.S. and its leading agricultural trading partners, Canada, Mexico and China.
The U.S. plans to impose sweeping broad tariffs on several trade partners starting on April 2, which may include those with Canada and Mexico.
—Additional reporting by Michael Hogan in Hamburg, Ella Cao and Mei Mei Chu in Beijing
