Chicago | Reuters – Chicago wheat rebounded on Monday as reports of more Russian strikes on Ukrainian port infrastructure rekindled concerns about war risks to Black Sea grain trade, encouraging investors to cover short positions after an eight-week low last week.
Soybeans were also higher, breaking a run of six falling sessions, as the oilseed found further support in a crude oil rally and an easing dollar.
“We’re holding firm because Russians are bombing the heck out of the Ukrainians again, and it’s unknown how much Ukraine can export these days,” said Jack Scoville, vice president of Price Futures Group.
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Corn tracked wheat and soybeans higher, with strong export demand for the grain also supporting prices.
The most-active wheat contract Wv1 on the Chicago Board of Trade settled 5-3/4 cents higher at $5.15-1/2 per bushel.
CBOT soybeans Sv1 settled 4 cents higher at $10.53-1/4, after hitting an eight-week low on Friday. CBOT corn Cv1 settled up 3-1/4 cents at $4.47 a bushel.
After ample global supply and doubts over Chinese demand pushed Chicago grains to multiweek lows in recent days, war headlines helped prices recover.
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.
Russia has increased attacks on the Odesa region on the Black Sea coast in recent weeks, disrupting Ukraine’s grain export logistics.
Large wheat harvests in Argentina and Australia are nonetheless further swelling global supply, keeping prices in check.
The prospect of another bumper harvest in Brazil this season has hung over the soybean market, even as traders remained skeptical about the pace of Chinese purchases of U.S. beans under a bilateral trade truce.
However, broad buying across agricultural commodities, typical near the end of the year, added support to soybean futures despite bearish fundamentals.
-Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.
