Ukraine Black Sea grain deal extended for at least 60 days
Cheap Black Sea exports will continue
Big Brazilian crop, banking problems depresses soybeans
Risk-off mood in banking concern
(Recasts with European trade, adds new comment, changes dateline)
HAMBURG, March 20 (Reuters) - Chicago wheat and corn fell on Monday after a deal to export grains by sea from war-torn Ukraine was extended, enabling cheap Ukrainian grain to continue flowing into world markets.
Soybeans fell with the focus on ample supplies from a record crop in Brazil coupled with a risk-off mood following turbulence in the banking sector.
Chicago Board of Trade most-active wheat fell 1.6% to $699 a bushel by 1204 GMT, corn fell 0.9% to $6.28-1/4 a bushel and soybeans slipped 0.5% to $14.68-1/4 a bushel.
European wheat and rapeseed also fell sharply.
The deal allowing a safe Black Sea shipping corridor to export Ukrainian grain was renewed on Saturday for at least 60 days, despite hopes for 120 days, after Russia warned any further extension beyond mid-May would depend on removing some Western sanctions.
“Wheat and corn markets are weaker after the safe shipping agreement for Ukraine’s exports was extended,” said Matt Ammermann, StoneX commodity risk manager. “Whether extended for 60 days or 120 days does not matter that much in the near term.”
“Overall the extension means that a lot of cheap Ukrainian wheat and corn will still be coming onto the global market. Russia is also exporting strongly after a huge wheat crop.”
“With only about four months to the new crop, a lot of old crop supplies will be chasing demand which looks bearish for prices.”
Brazil’s record soybean crop this season will allow the nation to boost exports to China while also increasing domestic soybean processing.
“Soybeans are seeking weakness from the massive crop in Brazil,” Ammermann said. “This is compensating for the continued reductions in crop forecasts after drought damaged the Argentine harvest.”
“There is a general risk-off mood today which is also weakening soybeans.” (Reporting by Michael Hogan in Hamburg, additional reporting by Naveen Thukral in Singapore, editing by Susan Fenton)
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