Wheat dips on higher Russian harvest outlook

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MEXICO CITY — Chicago wheat turned negative on Tuesday after hitting its highest price in nearly three weeks as Russia-focused agricultural consultancy Sovecon raised its harvest outlook and markets kept an eye on developments in the Black Sea region.

Corn futures were mostly flat on the risks to Ukrainian supply as the market assessed mixed weather for U.S. planting.

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Soybeans also reversed earlier gains.

Sovecon estimated that Russia would export 43 million tonnes of wheat in 2023-2024, its first forecast for the new season.

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The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 0.68% at $6.91-3/4 a bushel by 1054 CDT (1554 GMT), after earlier reaching the highest price since March 29.

CBOT soybeans fell 0.18% to $15.14-1/4 a bushel and corn lost 0.15% to $6.75-1/2 a bushel.

Russia’s foreign minister will discuss the Ukraine Black Sea grain export deal with U.N. Secretary-General Antonio Guterres in New York

next week

, just weeks before the pact could expire unless Russian demands regarding its own exports are met.

A halt to vessel inspections on Monday heightened concerns about Ukrainian shipments after Russia’s warnings that it could pull out of the wartime deal next month, though inspections resumed on Tuesday.

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In Romania, the ruling Social Democrat Party (PSD) said it will ask the coalition government to approve a temporary ban on Ukrainian grain imports, mirroring moves by other eastern European Union countries concerned about an influx of cheaper grain.

“In general, it’s been pretty volatile. A lot of this has been headline trading around the Black Sea region, as traders are trying to assess it,” said Terry Reilly, a senior analyst at Futures International. (Reporting by Cassandra Garrison in Mexico City, Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Subhranshu Sahu, Uttaresh Venkateshwaran, Sonia Cheema and Paul Simao)