U.S. wheat futures recouped losses to edge higher on Thursday, after a sharp decline in the previous session as the market gauged the impact of diplomatic talks to unblock Ukrainian ports.
The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was up 0.22% at $10.43-1/2 bushel.
Corn Cv1 shed 0.44% to $7.28 a bushel, while soybeans Sv1 edged 0.06% higher to $16.91 a bushel.
Increased Grains Exports
Talks of Russia opening Black Sea shipping channels to Ukrainian grain vessels have pressured wheat prices this week, although the market remains nervous about the possibility on increased grains exports from the region.
"Hopes are high, but reality is harsh," a China-based trader said, adding that prices were also supported by strong demand.
Ukraine's 2022 wheat harvest is likely to drop to 19.2 million tonnes, Ukrainian grain traders' union UGA said on Wednesday, though lower exports are seen pushing stocks to record levels.
Record Production In Australia
Australia, which emerged as the world's second-largest wheat exporter in 2021/22, is poised for a third year of near-record wheat production in 2022 as good weather boosts planting across its grain belt, easing concerns over tight global inventories.
Egypt's state grains buyer, the General Authority for Supply Commodities, said on Wednesday it bought 465,000 tonnes of wheat in an international tender.
Argentina's grain industry sold $4.2 billion in May, the best month since monthly records started, the Argentine Chamber of the Oil Industry and the Grain Exporters Center said in a report on Wednesday.
U.S. President Joe Biden's administration is likely to retroactively raise ethanol blending mandates for 2021 above the figure it proposed in December, Reuters reported, citing sources.
Commodity funds were net buyers of Chicago Board of Trade soybeans and soyoil futures contracts on Tuesday and net sellers of corn, wheat and soymeal futures contracts, traders said.
Global equities fell and the U.S. dollar advanced on Wednesday after stronger-than-expected economic data was unable to assuage investor concerns of high inflation and an impending recession driven partly by rising oil prices.
News by Reuters, edited by ESM. For more Supply Chain News, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.