SINGAPORE: The extension of Black sea grain deal between Russia and Ukraine helps in easing some of the concerns regarding global supply where Chicago wheat and corn futures fell on Monday, with prices under pressure. Soybeans declined due to abundant supplies from Brazil’s recently harvested record crop.
Read More : Grain Deal Between Russia & Ukraine Extends
Phin Ziebell, an agribusiness economist at National Australia Bank, stated, “There wasn’t huge amount of doubt about the Black Sea deal, but as far as today’s market action goes, I think the extension of the deal is putting pressure on prices.”
As of the most-active wheat contract on the Chicago Board of Trade was down 1.3% to $7.01 per bushel, while the most-active corn contract was down 1% to $6.28 per bushel. Soybeans fell 0.3 percent to $14.71-3/4 per bushel.
After Russia warnes that any further extension beyond mid-May would depend on the removal of some Western sanctions, the agreement allowing the safe export of Ukrainian grain through the Black Sea was extend on Saturday for at least 60 days, or half the original duration.
The settlement facilitated with Russia and Ukraine by the Unified Countries and Turkey in July and reestablished for a further 120 days in November.
The objective was to combat a global food crisis fueled in part by Russia’s invasion of Ukraine on February 24, 2022, and Black Sea blockade.
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According to Mines and Energy Minister Alexandre Silveira, Brazil’s National Energy Policy Council raised the country’s mandatory blend of biodiesel in diesel to 12 percent beginning in April.
CBOT wheat fates close higher
The action is suppose to lean toward for the most part the soybean handling industry, since around 65% of the absolute biodiesel create with soyoil in 2022.
According to Andre Nassar, the chief of Brazil’s oilseed lobby Abiove, Brazil’s record soybean crop this season will enable the nation to boost exports to China while also increasing domestic soybean processing.
In the week leading up to March 7, significant speculators switched to a net short position in Chicago Board of Trade corn futures, according to regulatory data released on Thursday.
Non-commercial traders, which include hedge funds, increased their net short position in CBOT wheat and their net long position in soybeans, according to the Commodity Futures Trading Commission’s weekly commitments of traders report.