April 4, 2022
US wheat and corn futures fall
US wheat futures dropped 4% and corn was 3% down on the Chicago Board of Trade (CBOT) as Ukraine-Russia talks boost hopes for a ceasefire as the Russian invasion disrupted grain exports through the Black Sea region, Reuters reported.
Trade was volatile, as benchmark May CBOT wheat futures swinging in a huge 96-cent range from a high of US$10.68-1/4 to a low of US$9.72 per bushel.
CBOT May wheat futures ended 42-3/4 cents at US$10.14-1/4. May corn futures finished 22-1/4 cents lower at US$7.26-1/4 a bushel, while May soybean futures dropped 21-1/4 cents to close at US$16.43 a bushel.
The wheat market has been affected by Russia's invasion into Ukraine, as both countries are key worldwide wheat exporters. Ukraine is also a major corn exporter.
Jack Scoville, market analyst at the Price Futures Group in Chicago, said grain futures dropped following talks between Russia and Ukraine of a possible ceasefire.
Scoville said prices were higher because of the invasion, so prices may retract because the war might be going away. But he said it doesn't change the fact that it is an overall tight situation.
Ahead of the US Department of Agriculture's report on US planting intentions and quarterly stocks, traders have continued to adjust their positions. Analysts projected the USDA to forecast higher soybean plantings this year compared to 2021, while corn acres are expected to decline from last year.