Grains prices fluctuated in Chicago as the latest round of talks striving for a cease-fire agreement between Russia and Ukraine began, and as traders awaited major U.S. crop reports on supplies.
Ukraine is aiming for a “minimum” goal of an improvement in the humanitarian situation that has caused millions to flee their homes, according to Foreign Minister Dmytro Kuleba. Russia’s invasion last month has disrupted global grains trade and is curbing the campaign of Ukraine spring plantings that’s now underway.
Traders are eyeing key reports from the U.S. due Thursday, detailing spring planting intentions and quarterly grain stockpiles. The data will give an initial indication on how farmers are responding to both soaring input costs, as well as rising demand for crops from alternative origins amid the war in Europe.
“Ongoing negotiations between Russia and Ukraine offer hope for a detente,” adviser Agritel said in a note. “In Russia, exports are continuing despite the situation in the Black Sea basin, whereas in Ukraine they have been completely halted by sea freight.”
Wheat futures in Chicago fell 1.4% to $10.42 1/2 a bushel, after flipping between gains and losses. The Paris contract also declined, as did Chicago corn. Soybeans rose 0.3%.
Supply prospects are also improving in some key regions. Kansas wheat conditions were better last week, as rains helped to ease a lengthy drought. India also looks set to export a record amount of the grain in the coming year to help fill the gap left by choked Black Sea supply.
