Chicago wheat futures saw an uptick on Tuesday, hovering near a three-week high, driven by apprehensions surrounding potential disruptions in exports from major supplier Russia due to a dispute between shippers and regulators regarding grain quality. While wheat prices reached their highest level since March 4 at $5.67 a bushel on Monday, concerns over export flows have provided short-term support amidst ongoing uncertainties. The recent restriction on processing and shipment of approximately 400,000 metric tons of grains in Russia has added to market jitters, following complaints from importing countries about grain quality non-compliance with quarantine standards.
Traders are also monitoring the situation in Ukraine amid Russian attacks on port and energy infrastructure, which could impact Ukrainian wheat exports. Additionally, EU crop monitoring service MARS reported that winter grain crops in the European Union are facing mediocre conditions in various regions. Despite these challenges, analysts anticipate that Russian shipments could set a new March record of 5 million tons this month. In contrast, CBOT soybeans and corn futures experienced slight declines ahead of the upcoming USDA planting intentions report, with expectations of an increase in soybean area and reductions in corn and wheat areas. The soybean harvest progress in Brazil for the 2023/24 season has reached 69% of the planted area, slightly below the previous year’s level, according to AgRural.