Chicago wheat futures dropped to a three-week low on Tuesday after the U.S. secured agreements with Russia and Ukraine to ensure safe Black Sea navigation, easing fears of export disruptions. Corn and soybean prices also fell amid rapid U.S. planting progress and expectations of a record South American soybean harvest.
Price Movements (April 2 Settlement):
Wheat (CBOT): Fell 5 cents to $5.43-1/4/bushel, lowest since March 5.
Corn (CBOT): Dropped 6.75 cents to $4.57-3/4/bushel.
Soybeans (CBOT): Declined 5.5 cents to $10.01-3/4/bushel, a March 12 low.
Key Drivers:
Black Sea Navigation Pacts:
U.S.-brokered deals with Russia and Ukraine aim to secure grain exports from the region, reducing supply risks.
Analysts warn the agreements could boost global wheat flows, pressuring prices further.
U.S. Planting Accelerates:
Corn planting surged in southern states: 65% complete in Louisiana, 45% in Texas (USDA data).
Improved weather forecasts in the Midwest added downward momentum.
South American Soybeans:
Expectations of a large Brazilian/Argentine harvest weighed on soybean futures.
Tariff Tensions:
Concerns over April 2 U.S. tariffs on China, Mexico, and Canada sparked fears of retaliatory measures against American farm exports.
Market Outlook:
Wheat: Focus shifts to Black Sea shipment volumes and Ukraine’s export pace.
Corn/Soybeans: Traders monitor U.S. planting weather and South American harvest progress.
Risk Watch: Escalating tariff disputes could disrupt global agri-trade flows.