Chicago | Reuters — U.S. grain futures fell on Monday as Russia’s exit from the Black Sea export deal failed to shock traders.
Wheat and corn futures slumped after earlier rising to two-week highs when Russia announced it was leaving the agreement that lets Ukraine export grain through the Black Sea.
Russia had long threatened to quit over what it called a failure to meet its demands to ease rules for Russian food and fertilizer exports.
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Analysts said there are still expectations the grain deal may be renewed, and the markets were well aware of the risk for it to expire.
“We’ve heard Russia say they want to back out of the grain deal many, many times,” said Ted Seifried, chief market strategist for Zaner Ag Hedge. “The trade is really skeptical that it’s really over.”
The deal, brokered by the United Nations and Turkey in July 2022, aimed to alleviate a global food crisis.
Ukraine said the agreement can function without Russia, while Moscow said it would consider rejoining the pact if it saw “concrete results” on its demands.
“I think it’s suspended; it’s maybe not over,” said Sherman Newlin, analyst for Risk Management Commodities. “There’s still some hope out there.”
Most-active wheat futures fell 7-3/4 cents to $6.53-3/4 per bushel at the Chicago Board of Trade, while corn dropped 7-3/4 cents to $5.06 (all figures US$).
CBOT soybeans rose 7-1/4 cents to $13.78 per bushel amid uncertainty over U.S. crop yields.
The U.S. Department of Agriculture, in a weekly report issued after the close of trading, rated 55 per cent of the nation’s soybean crop in good-excellent condition. That was up four percentage points and above analysts’ expectations for 53 per cent.
USDA rated 57 per cent of the U.S. corn crop as good-excellent, up two percentage points and in line with expectations.
In other news, U.S. soybean processors crushed fewer beans than expected in June, the National Oilseed Processors Association said.
— Reporting for Reuters by Tom Polansek in Chicago; additional reporting by Michael Hogan in Hamburg and Naveen Thukral in Singapore.
