April 22, 2020

US wheat futures rose almost 1%

Following Russia's announcement that it will suspend exports, US wheat futures rose nearly 1% on Monday as it sparked concerns about global supplies.

Soybeans were flat, while corn fell 0.5% due to weak oil prices.

The most-active wheat futures on the Chicago Board of Trade rose 0.8% to US$5.38-1/4 a bushel by 0340 GMT, having closed 0.6% higher on Friday.

Analysts attributed the rise to concerns about global supplies after Russia said on Friday it would shortly suspend exports.

"There is plenty of uncertainty about global wheat supplies after Russia said it shut-off shipments and that is supporting prices," said one Melbourne-based grains trader. He declined to be named as he is not authorised to talk to the media.

Russia's deputy agriculture minister Oksana Lut said on Friday the country will suspend exports until July 1 once its export quota is exhausted, which is expected to happen in mid-May.

Russia last fully banned wheat exports in 2010 when drought hit its harvest, rocking global markets. Turkey, Egypt and Bangladesh are the largest buyers of Russian wheat.

Ukraine, one of the world's top grain exporters, is ready to ban wheat exports if sales exceed limits agreed with traders, the deputy economy minister in charge of agriculture said last week.

But Ukrainian wheat exports jumped nearly 50% in the week of April 11-17 despite a government warning that it could ban shipments if export rates are too high.

Meanwhile, China's soymeal demand this year is expected to be slightly lower than last year on smaller pig herds and delayed poultry production, a Chinese ministry of agriculture official said on Sunday.