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Wheat And Corn Rise As Ukraine Shipping Deal Set To End On Monday

By Donna Ahern
Wheat And Corn Rise As Ukraine Shipping Deal Set To End On Monday

Chicago wheat futures rose on Friday amid concerns over the future of Ukraine’s wartime grain export shipping deal, expiring on Monday.

Soybeans and corn rose on worry about hot dry weather forecast in US and Canadian grain belts.

The 15-month lows in the dollar, making US supplies cheaper in export markets, also underpinned prices.

Chicago Board of Trade most active wheat Wv1 was up 2.0% at $6.52-3/4 a bushel at 1120 GMT. Soybeans Sv1 rose 0.6% to $13.78-1/2 a bushel, and corn Cv1climbed 2.0% to $5.10-1/2 a bushel.

The EU Commission is helping the United Nations and Turkey try to extend the deal allowing the Black Sea export of Ukrainian grain, and is open to "explore all solutions".


"Wheat is being supported today by the fear that the Ukrainian safe shipping deal will not be extended, along with the weaker dollar which is positive for U.S. exports," said Matt Ammermann, StoneX commodity risk manager.

"There is a reaction to the headlines about corridor expiry, even though there is general belief in the market that an extension may not take place."

Meeting Demands

President Vladimir Putin said on Thursday Russia was set to withdraw from the deal unless its own demands are met.

"For the wheat price, it is the negotiations of the grains deal between Ukraine and Russia that are now likely to come more into focus," Commerzbank analyst Thu Lan Nguyen said in a note.


Soybeans and corn were supported by worry about drought in parts of the US Midwest and Canada.

"Although there is some moderate rain expected in coming days, this is forecast to be followed by high temperatures which could remove the benefits of rain," Ammermann said.

"Despite the optimistic USDA forecasts of US crops this week, there is concern the dryness could have an impact on U.S. crops in the coming four weeks."

News by Reuters, edited by Donna Ahern, Checkout. For more supply chain news, click here. Click subscribe to sign up for the Checkout print edition.

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