On Tuesday, wheat prices edged down after a ship left a Ukrainian port with cargo for the first time after the blockage from war. The move is in line with a newly agreed shipping channel, raising expectations of improved world supplies.
Accordingly, Chicago futures tied to the grain declined 2.19% to $782.50 per metric ton. This downturn followed a slump of 2.81% yesterday. Then, US wheat futures have fallen 40.00% from their peak in May as the shock to markets has receded.
The Sierra Leone-flagged Razoni left the port of Odesa, holding 26,000 tons of maize. The ship will travel with a destination for the Lebanese port of Tripoli. Subsequently, under the deal, the carrier will have to stop for inspection in Turkish waters prior to its final destination.
Officials built a coordination centre in Istanbul to oversee ships departing Ukraine. They will also check incoming water vehicles for weapons as part of the agreement.
Analysts also cited that there are fifteen other ships waiting to leave Odesa as of Monday. Correspondingly, the development fueled hopes of a solution to the looming food crisis in many parts of the emerging world. However, this news eventually capped wheat’s upsides.
Most countries depend on Ukraine and Russia for much of their grain supply and overall food security. Due to the Russian invasion, Kyiv has been unable to export vast stocks of wheat, corn, sunflower seeds, and oil. Reports revealed that Moscow blocked ports of the country since February.
US Wheat traders monitor crop weather closely
Furthermore, traders also kept an eye close on the United States crop weather. Recently, the American Department of Agriculture’s weekly condition ratings improved for soybeans and spring wheat while holding steady for corn.
At the same time, maize contracts slashed 1.09% to $600.25 per metric ton. Then, like wheat, futures of the oilseed commodity decreased 0.63% to $1,397.12 per metric ton. The latest report defied expectations for downgrades in all three crops trailing a hot week in the US Corn Belt.