Wheat futures on the Chicago Board of Trade fell by the exchange limit in Tuesday’s trading on the possibility that Russia could lift its blockade of Black Sea ports in exchange for the removal of sanctions.
Wheat for July delivery (W_1:COM) settled -6.1% to $10.87 1/2 per bushel, its lowest level since May 4, as Russia reportedly discussed Black Sea exports with Turkey on Monday and said it is willing to help ensure Ukrainian exports, although some analysts remain skeptical.
Chicago corn (C_1:COM) for July delivery closed -3.1% at $7.535 per bushel, the lowest since April 7, and July soybeans (S_1:COM) finished -2.8% at $16.83 1/4 per bushel.
ETFs: (NYSEARCA:WEAT), (NYSEARCA:CORN), (NYSEARCA:SOYB)
In the U.S., a June weather forecast looked favorable for much of the Farm Belt, and a report showed U.S. farmers were making progress in planting.
“We are not seeing confirmation yet of a threatening summer forecast,” and a 30-day weather outlook released by the U.S. government on Tuesday showed “no yield threat” to crops, according to Allendale chief strategist Rich Nelson.
Corn seedings as of last week were 86% complete, matching expectations, and owing of spring wheat, which has been delayed for most of the month due to excessive rainfall in the eastern Corn Belt and drought out west, topped expectations at 73%, up from 49% planted in the prior week, while soybean planting is 50% complete.
Earlier in May, below-normal spring wheat planting had raised wheat futures to multimonth highs.