Chicago: wheat futures edged higher to the $10.8 mark, well above the 7-week low of $10.3 touched on June 1st amid prolonged shortage concerns.
Expectations of higher trading activity from Ukraine remained subdued as the West is unlikely to relax sanctions on Moscow, a requirement set by the Kremlin to open trade corridors in Ukrainian Black Sea and Sea of Azov ports.
22 million tonnes of Ukrainian grain are estimated to be stuck in port silos, being accumulated since maritime trading was halted on February 24th. Further, June’s FAO report forecasted the first drop in global grain production in four years for the coming marketing year, with the main declines seen for wheat and rice.
Elsewhere, investors remained attentive to any possible exemptions to India’s export ban passed on May, following news that the government could allow exporters to ship up to 1.2 million tonnes of wheat currently stuck in cargos.