Chicago Board of Trade wheat futures rose on Monday, reversing earlier weakness on fears that intensified fighting between Russia and Ukraine would further disrupt Black Sea exports.
Corn and soybean futures turned higher, though prices remained under pressure as crude oil tumbled on prospects for a deal between the U.S. and Iran, along with a spate of recent rainfall across parts of the U.S. Midwest.
Corn futures ticked higher on support from the wheat market, where a technical bounce was also bolstered by a spate of weather worries, market analysts said.
"The wheat market found a floor, but we're seeing Europe in a dry drought pattern, the U.S. in a drought, and now with this El Nino shaping up, Australia is going into a drier weather pattern too," said Don Roose, president of Iowa-based U.S. Commodities.
Soybeans saw a choppy day of trading early in the session, though by mid-morning futures were bolstered by fresh export news. The U.S. Department of Agriculture on Monday confirmed private sales of 488,000 metric tons of U.S. soybeans for shipment to China, and an additional 136,150 tons of soybeans to unknown destinations — with both for delivery in the 2026/27 marketing year.
Reuters reportedon Friday that Chinese government buyers purchased at least eight cargoes of U.S. soybeans for shipment from U.S. Gulf Coast terminals and six cargoes for shipment from Pacific Northwest ports in October and November, two U.S. traders with knowledge of the deals said.
The sales volume of at least 840,000 metric tons was among China's largest single-day purchases this month after the world's top soybean importer restarted purchases from the U.S. in late June, traders told Reuters.
CBOT's most active wheat was up 0.9% to $6.45 a bushel at 10:28 a.m. CDT (1528 GMT). Corn was up 0.97% at $4.68-1/2 a bushel and soybeans rose 0.08% to $11.88-1/2 a bushel.
Traders also said they are waiting for a report later on Monday from the U.S. Department of Agriculture that will provide the latest updates to U.S. crop conditions.
Wheat traders were focusing on prospects of continued drone and missile attacks on ships and ports in Ukraine and Russia, which have already interrupted Ukraine's wheat exports with Russian wheat exports also falling, market analysts said.
"Wheat is again being supported by the attacks on ports and shipping by Ukraine and Russia," said Matt Ammermann, commodity risk manager at StoneX. "Details on the reports are still lacking, but the fear is present that Russian and Ukrainian wheat exports could be further disrupted by the fighting."
Russia said on Monday it was increasing protection of ships in the Azov-Black Sea basin, while also developing alternative cargo routes, in a move that follows a sharp escalation of attacks at sea by both sides in the war in Ukraine.
(Reuters)