Wheat futures fall, but corn and soybeans rise in Chicago

Wheat futures fell on Thursday, with the most active contract on the Chicago Stock Exchange, soft red winter wheat, tumbling 7.7%, as traders said the rally sparked by Russia’s invasion of Ukraine had made it too expensive. the grain for potential buyers.

“The market is pausing to catch its breath,” said Jim Gerlach, president of commodity broker A/C Trading. “Fair value was overstepped, so the market is going to figure it out here and find out where the real demand is in terms of pricing.”

Benchmark Chicago wheat futures fell by their daily limit on Wednesday after rising 54% since the fight between those two key global exporters began.

Corn and soybean futures rose, supported by signs that export demand for US supplies will remain strong after a drought in South America withered crops in Brazil and Argentina.

CBOT May wheat futures fell 92 cents to $11.0950 a bushel.

In Europe, May wheat on Paris-based Euronext rose 0.4% to €373.75 a tonne, but remained below its session high of €390.25.

Rumors that French wheat could supply the lion’s share of a large purchase tender by Algeria fueled expectations of additional demand for wheat from the European Union to replace Ukrainian and Russian supplies, which account for about 30% of world grain exports.

The US Department of Agriculture said on Thursday that weekly wheat export sales amounted to 370,200 tons. Analyst forecasts for the weekly total ranged from 250,000 to 700,000 tonnes.

Chicago May corn rose 17.75 cents to $7.5075 a bushel and CBOT May soybeans rose 20.5 cents to $16.9225 a bushel.

The USDA reported weekly corn export sales of 2.167 million tons, beating market expectations, and soybean export sales of 3.099 million tons, 38% more than the previous week.

For his part, Russian President Vladimir Putin said global food prices will rise further if Western nations intensify economic pressure on his country, a major world producer of fertilizers and grains.

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