Posted on June, 14, 2022 at 09:11 am
Chicago corn and wheat futures lost ground on Tuesday, as concerns over rising inflation weighed on global markets and added pressure on the prices of agricultural products.
However, losses in wheat were limited by expectations of a sharp decline in Ukraine's grain output following Russia's invasion.
Asian shares tumbled after Wall Street hit a confirmed bear market milestone and bond yields struck a two-decade high on fears aggressive U.S. interest rate hikes would push the world's largest economy into recession. MKTS/GLOB
The most-active corn contract on the Chicago Board of Trade (CBOT) Cv1 fell 0.3% to $7.66-3/4 a bushel, as of 0324 GMT, and wheat Wv1 gave up 0.7% to $10.63-3/4 a bushel. Soybeans Sv1 added 0.5% to $17.16 a bushel.
On the fundamental front, the U.S. Department of Agriculture (USDA) rated 72% of the U.S. corn crop in good to excellent condition in its weekly crop progress report, down 1 percentage point from a week ago and below the average of estimates in a Reuters poll.
In a report released after market hours on Monday, the USDA rated 70% of the soybean crop as good to excellent in its first 2022 condition ratings for the oilseed, in line with trade expectations.
The wheat market is concerned about Ukrainian grain exports.
A senior government official said on Monday Ukraine's grain harvest was likely to drop to around 48.5 million tonnes this year from 86 million tonnes last year following Russia's invasion.
First Deputy Agriculture Minister Taras Vysotskyi said the total area sown had fallen by 25% and the 2022/23 exportable surplus could be 30 million tonnes, meaning significant loss of revenue.
Commodity funds were net sellers of CBOT soybean, soymeal, soyoil, corn and wheat futures contracts on Monday, traders said. COMFUND/CBT
Source: Nasdaq