Wheat firms, set for biggest weekly loss in six months on Black Sea supplies

Chicago wheat futures edged higher on Friday (Jan 6) but the market is on track for its biggest weekly decline in six months, as ample supplies from the Black Sea region weighed on prices.

Soybeans and corn ticked higher, recouping some of recent losses with both market set to end of the week in a negative territory.

The most-active wheat contract on the Chicago Board of Trade (CBOT) gained 0.2% to US$7.48-1/4 a bushel, as of 0139 GMT. Soybeans added 0.3% to US$14.74-1/2 a bushel and corn rose 0.3% to US$6.54-3/4 a bushel.

For the week, wheat is down 5.5%, the biggest since July 15, soybeans have lost 3.3%, the most since end-September and corn has dropped 3.5%, its biggest decline since early December.

For wheat, the availability of abundant low-priced supplies from Russia and Ukraine are giving stiff competition to other global exporters, traders said.

Recent rains boosted 2022/23 soybean plantings after delays resulting from a severe drought, the Buenos Aires grains exchange said. Upcoming showers will reduce the stress on crops in southern and western areas, Commodity Weather Group said.

Commodity funds were net sellers of CBOT soybean, corn and soyoil futures contracts on Thursday and net buyers of soymeal and wheat futures, traders said.

US stocks sank on Thursday and brought to a halt a rally in global stocks, as upbeat American jobs data after the Federal Reserve’s firm message that it will not be cutting interest rates any time soon offset China’s latest reopening plans.

Tags: prices, soybeans, wheat, soyoil, Black Sea, futures, Market, Ukraine, Russia, corn