Chicago wheat inched down on Tuesday, pausing after a three-day rally that was fuelled by concerns that escalation in the Russia–Ukraine war could disrupt Black Sea exports.

Soybeans ticked higher for a second day as it recovered from an eight-week low, while corn edged up to a two-week high with support from brisk U.S. exports.

The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 0.2% at $5.14-3/4 a bushel by 1239 GMT.

The price benchmark has rebounded from an eight-week low struck last Wednesday, with a series of Russian attacks on Ukrainian port infrastructure encouraging investors to cover short positions.

“We have seen some uptick in wheat prices due to the Black Sea situation,” said one Singapore-based grains trader, referring to recent gains.

“But there are no major supply issues despite the Russia–Ukraine war. In fact, bumper harvests in the Southern Hemisphere, particularly in Australia and Argentina, are adding to global supply pressure.”

Russian forces hit port and energy infrastructure in Ukraine’s Odesa region, sparking a fire that burned 30 containers of flour and vegetable oil at the port of Pivdennyi, a senior Ukrainian official said on Monday.

CBOT soybeans ticked up 0.1% to $10.66-1/4 a bushel, while corn added 0.2% to $4.48 a bushel.

Soybeans had slid last week as traders remained cautious about the pace of Chinese purchases of U.S. beans under a bilateral trade truce, while forecasters continued to project another record harvest in Brazil this season.

Chicago grains found some support from wider financial markets, including a falling dollar and firm crude oil.

“Last week’s cooler inflation data has put (interest rate) cuts back on the table, which is allowing the typical year-end ‘Santa Rally’ to pull commodity prices higher,” Peak Trading Research said in a note.
Source: Reuters