Wheat extends losses on Black Sea deal, soybeans firm

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SINGAPORE — Chicago wheat futures lost more ground on Wednesday, weighed down by extension of a Black Sea export deal that eased concerns over global supplies.

Soybeans and corn prices rose in early Asian trade.

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FUNDAMENTALS

* The most-active wheat contract on the Chicago Board of Trade (CBOT) lost 0.1% to $6.82-3/4 a bushel, as of 0012 GMT.

* Soybeans added 0.3% to $14.70-3/4 a bushel and corn gained 0.4% at $6.32-1/4 a bushel.

* The deal, allowing the safe export of grain from Ukrainian and Russian Black Sea ports, was renewed on Saturday for 60 days – half the intended period – after Moscow said any further extension beyond May 18 would hinge on the removal of some Western sanctions.

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* Russian wheat prices declined last week due to continued high supplies from Russia and lower prices from the country’s major competitors, including Ukraine, analysts said.

* However, grain markets are also monitoring harvest prospects in key producing and consuming countries.

* Ukraine’s 2023 grain harvest is likely to fall to 44.3 million tonnes from 53.1 million in 2022 as less acreage is sown due to Russia’s invasion, a forecast by the Ukrainian agriculture ministry showed on Monday.

* In India, unseasonal rains and hailstorms have damaged ripening, winter-planted crops including wheat in the country’s fertile northern, central and western plains, exposing thousands of farmers to losses and raising the risk of further food price inflation.

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* Torrential rains on Sunday and Monday lashed the states of Punjab, Haryana, parts of Uttar Pradesh and Madhya Pradesh, which account for the bulk of wheat output in India, the world’s biggest producer after China, flattening crops and flooding farms.

* Commodity funds were net sellers of CBOT corn, soybean, wheat, soymeal and soyoil futures contracts on Tuesday, traders said.

MARKET NEWS

* Global shares leapt on Tuesday after the rescue of Credit Suisse stemmed a rout in equities and whetted risk appetite, although financial system uncertainties limited buying as investors awaited the outcome of a Federal Reserve meeting.

DATA/EVENTS (GMT) 0700 UK Core CPI YY Feb 0700 UK CPI YY Feb 1800 US U.S. Federal Open Market Committee announces its decision on interest rates followed by statement (Reporting by Naveen Thukral; Editing by Rashmi Aich)