Chicago Wheat Rises Amidst Black Sea Security Deal Uncertainty
Chicago wheat futures were hesitant on Wednesday after Russia said that a number of conditions must be met before a Black Sea security deal with Ukraine can be activated, further questioning the agreement's impact on exports from the region.
However, prospects that the deal would pause attacks at sea and on energy targets, along with favourable weather in the Black Sea region continued to pressure prices.
The most-active wheat contract Wv1 on the Chicago Board of Trade (CBOT) was down 0.2% at $5.42-1/4 a bushel as of 1257 GMT. It had been hesitating between negative and positive territory in earlier trade.
The U.S. on Tuesday reached separate deals with Ukraine and Russia to secure navigation of the Black Sea, which is considered bearish for wheat as they could increase security for Russian and Ukrainian exports.
But the Kremlin said on Wednesday that a number of conditions must be met before the deal can be activated, pointing to an earlier agreement which it said saw Moscow's needs ignored.
The new Black Sea deal would likely have little changed grain export flows out of the region with Ukrainian supplies running low and Russia having imposed wheat export restrictions, analysts and traders said.
Exports out of the two countries had persisted after Russia withdrew from the deal in 2023, using alternative maritime, fluvial and land routes.
Wheat also faced headwinds from forecasts of rain in the Black Sea region, although drought conditions in the U.S. Plains continue to worsen, said a Singapore-based trader.
Soybeans and corn also edged higher, although concerns over U.S. tariffs potentially reducing farm exports and large harvests in key exporters Brazil and Argentina continued to weigh.
Soybeans Sv1 gained 0.3% to $10.04-3/4 a bushel, after three consecutive sessions of decline, while corn Cv1 also rose 0.3% to $4.58-3/4 a bushel.
Traders are eyeing next week's March stocks and acreage report by the United States Department of Agriculture (USDA), along with the start of reciprocal tariffs on April 2.
Corn planting is advancing ahead of schedule in the southern U.S., analysts said. A report from the USDA on Monday showed corn seeding was 65% complete in Louisiana, 45% in Texas, 14% in Mississippi, and 10% in Arkansas.
Commodity funds net sold CBOT wheat, corn and soybean futures contracts on Tuesday, traders said. They net bought soymeal and soyoil futures contracts.
(Reuters)