Chicago | Reuters — Chicago wheat futures declined on Monday in a technical and profit-taking retreat after concerns about political stability in major exporter Russia had lifted prices earlier to four-month highs.
Corn ended mixed and soybeans closed below session highs as milder temperatures and crop-boosting rains in parts of the U.S. Midwest over the weekend tempered some worries about drought-reduced yields.
Grains markets had opened the week on a strong note as an aborted mutiny in Russia by Wagner Group mercenaries over the weekend stoked concerns that grain flows from the breadbasket region could be disrupted.
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U.S. grains: Wheat futures rise on supply snags in top-exporter Russia
U.S. wheat futures closed higher on Thursday on concerns over the limited availability of supplies for export in Russia, analysts said.
Chicago Board of Trade September wheat ended down 8-1/4 cents at $7.38-1/4 a bushel after peaking at $7.70-1/4 in early trading, the highest since Feb. 23 (all figures US$). Several wheat contracts briefly rose above their 200-day moving averages, but failed to hold gains above the key technical level.
“More uncertainty caused some short covering in wheat, but that’s really simmered down since the open … We’ve reached a key technical objective in the Chicago wheat so we’ll see where it goes from here,” said Ted Seifried, chief market strategist with the Zaner Group.
Sluggish U.S. export demand and rising supplies from the ongoing winter wheat harvest, which analysts expect is 29 per cent complete, also hung over wheat futures.
Dry Midwest weather and declining crop conditions kept a floor under corn and soybean markets, although weekend rains in some northern crop areas lessened concerns about the drought.
Analysts polled by Reuters expect the U.S. Department of Agriculture to lower its corn and soy crop ratings by three points in a weekly report later on Monday.
CBOT new-crop December corn settled 1/4 cent higher at $5.88-1/4 a bushel, while November soybeans were 13 cents higher at $13.23 a bushel.
— Reporting for Reuters by Karl Plume in Chicago; additional reporting by Michael Hogan in Hamburg and Naveen Thukral in Singapore.
