Chicago wheat futures experienced a recovery on Monday after four consecutive sessions of losses, buoyed by Russian attacks on Ukraine’s agricultural infrastructure over the weekend. The most-active wheat contract on the Chicago Board of Trade (CBOT) rose by 0.9% to $5.33-1/4 a bushel, marking a turnaround from the previous week’s decline. In addition to wheat, soybean and corn futures also saw increases for a second straight session, reflecting ongoing market concerns and developments.
The Russian air attacks that targeted agricultural enterprises and industrial buildings in Odesa, as reported by Ukraine’s forces, added to the uncertainties surrounding global grain supplies. As Ukraine progresses with spring sowing activities across various regions, including crops like spring wheat, peas, barley, and oats, the agricultural sector grapples with challenges amid the conflict and disruptions.
Moreover, the U.S. wheat market faces stiff competition from a significant influx of Russian supplies, prompting Chinese buyers to cancel deals for U.S. and Australian wheat shipments. On the other hand, corn futures receive support from short covering activities and private sales of U.S. corn to undisclosed destinations for the 2023/24 marketing year.
Amid these evolving market dynamics, large speculators adjusted their positions in CBOT corn futures, while noncommercial traders increased their net short position in CBOT wheat and reduced their net short position in soybeans, according to the latest data from the Commodity Futures Trading Commission’s weekly commitments of traders report.