Posted on May, 22, 2024 at 09:17 am
CRM Agri has reported that wheat prices have soared, as worries over Black Sea supplies spread to Ukraine, while oilseeds gained support from firmer vegetable oil markets.
Wheat futures leaped 4.8% in late morning deals in Chicago for July-24 delivery, their strongest performance in 10 months, as weather forecasts showed a largely dry fortnight ahead for southern Russia, where dryness has raised crop concerns.
Furthermore, reports of crop damage from dryness and frost spread to northern and eastern Ukraine, where weather maps show clear skies for the next fortnight, while Ukrainian drone attacks on the Russian grain export of Novorossiysk reminded the market of geopolitical risks.
Buying was supported too by reports of a rise in Russian export prices to US$239/t as of last week, a four-month high.
In European futures markets, London feed wheat for November-24 stood up 2.9% in late deals, back above the £220/t mark, while Paris milling wheat for September-24 gained 4.0%.
Other grains were buoyed in turn, with Chicago corn futures for July-24 adding 1.8% to return above its 20-day and 100-day moving averages. US export data for last week showed corn shipments of 1.2 million t, up by nearly 200 000 t week on week.
Soybean futures for July-24 rose by 1.6% to return close to US$12.50/Bu, helped by a rise in vegetable oil prices, led by Kuala Lumpur palm oil, which has continued to find support from data showing a rise in palm imports by India, the top importer, to a three-month high.
Chicago soyoil for July-24 stood up 2.5%.
Rapeseed, with its high vegoil content, was helped in turn, adding 1.3% to €485/t for Paris August-24 futures. A close at this level would be the contract’s highest in 10 months.
Source: DRY Bulk