Commodities Update — Grains ease; G7 continues pressure on Russia to tackle wheat war; Indonesia seizes cooking oil shipment

Chicago Board of Trade wheat and corn futures weakened on Friday, a day after rising on US Department of Agriculture forecasts that indicated tightening global supplies.

Traders took some profits ahead of the weekend and on expectations that US farmers are advancing corn plantings thanks to improved Midwest crop weather, analysts said. The USDA is slated to issue a weekly update on planting progress on Monday.

The most-active Chicago Board of Trade soft red winter wheat contract ended down 1-1/4 cents at $11.77-1/2 a bushel after earlier hitting a two-month peak.

Most-active CBOT corn closed 10-1/4 cents lower at $7.81-1/4 a bushel, while soybeans finished up 32-3/4 cents at $16.46-1/2 a bushel.

Egypt has strategic reserves of wheat sufficient to cover its needs for four months, Prime Minister Mostafa Madbouly said on Sunday in a televised news conference.

Egypt also has strategic reserves of vegetable oils to cover six months, he added.

Group of Seven foreign ministers vowed on Saturday to reinforce Russia’s economic and political isolation, continue supplying weapons to Ukraine and tackle what Germany’s foreign minister described as a “wheat war” being waged by Moscow.

After meeting in the Baltic Sea resort of Weissenhaus, senior diplomats from Britain, Canada, Germany, France, Italy, Japan, the US and the EU also pledged to continue their military and defense assistance for “as long as necessary.”

They would also tackle what they called Russian misinformation aimed at blaming the West for food supply issues around the world due to economic sanctions on Moscow and urged China not to assist Moscow or justify Russia’s war, according to a joint statement.

“Have we done enough to mitigate the consequences of this war? It is not our war. It’s a war by the president of Russia, but we have global responsibility,” Germany’s Foreign Minister Annalena Baerbock told reporters.

Former Russian President Dmitry Medvedev, a close ally of Vladimir Putin, dismissed the meeting, especially the group’s insistence that the integrity of Ukraine’s internationally recognized borders is recognized.

“Let’s put it mildly: our country does not care at all about the G7 not recognizing the new borders. What is important is the true will of the people living there,” he said in an online post.

Russian forces control large parts of eastern Ukraine.

Indonesia has impounded at least 81,000 liters of cooking oil bound for East Timor, the trade ministry said, as the Southeast Asian country seeks to enforce a ban on exports of crude palm oil and its derivatives including cooking oil.

At least eight shipping containers holding cooking oil and other items were confiscated at Tanjung Perak port on April 28 in Surabaya on Java island after “the ship deceived (authorities) by not listing cooking oil in the export declaration document,” the trade ministry said in a statement late on Thursday.

Those found guilty of breaching the cooking oil export ban could face a maximum of five years of prison and a fine of up to $341,997, said Sihard Hadjopan Pohan, a director at the trade ministry. Officials did not name the ship or the owner of the cargo.

Indonesia, the world’s biggest palm oil producer, has since late last month halted exports of crude palm oil and refined products in a bid to control soaring prices of cooking oil at home.

Tags: Chicago Board of Trade, corn, vegetable oils, Indonesia, soybeans, Crude palm oil, wheat, futures, cooking oil, Ukraine, plantings, Russia, soft red winter wheat, Egypt