Wheat falls, nearly wiping out YTD gains, on signs of easing tightness (NYSEARCA:WEAT)

Wheat falls, nearly wiping out YTD gains, on signs of easing tightness (NYSEARCA:WEAT)

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CBOT wheat futures fell to a five-month low on Friday, as the possibility of a surge in exports from Ukraine threatens recent gains made in demand for U.S. supplies.

Russia, Ukraine, Turkey and the United Nations reportedly may be poised to sign a deal next week aimed at unblocking millions of tons of Ukraine grain exports held up by the war.

Wheat (W_1:COM) for September delivery closed -2.7% to $7.76 3/4 per bushel, falling for the fifth straight day and briefly wiping out gains for the entire year that had been sparked by disruption to Black Sea shipping routes caused by Russia’s invasion.

“The partial opening of Black Sea ports would [allow] Ukraine wheat exports to grow” to 12.5M metric tons from 10M tons, according to AgResource.

Corn (C_1:COM) for December delivery settled +0.5% to $6.03 3/4 per bushel, supported by concerns about hot, dry weather in the U.S., and November soybeans (S_1:COM) ended +0.1% to $13.42 1/4 per bushel.

ETFs: (NYSEARCA:WEAT), (CORN), (SOYB)

In another sign of easing tightness, the U.S. Department of Agriculture earlier this week raised its outlook for global wheat stockpiles.

Originally Posted on: https://seekingalpha.com/news/3857313-wheat-falls-nearly-wiping-out-ytd-gains-on-signs-of-easing-tightness?source=feed_tag_commodities
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